National Pharmaceutical Pricing Authority

Aug. 1, 2024

Union Minister of State for Chemicals and Fertilizers informed the Rajya Sabha that many pharmaceutical companies received notices from the National Pharmaceutical Pricing Authority (NPPA) and the government recovered Rs 73 crore in violation of the Drug Price Control Order.

About National Pharmaceutical Pricing Authority:

It was set up in 1997 to fix and revise the prices of controlled bulk drugs, and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995.
It is an independent regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.
Functions

To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
To deal with all legal matters arising out of the decisions of the Authority.
To monitor the availability of drugs, identify shortages, if any, and to take remedial steps
To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations
To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals
To render assistance to the Central Government in the parliamentary matters relating to the drugs