Press Information Bureau

Government of India

Ministry of Chemicals and Fertilizers

29-November-2012 17:46 IST

Whenever any prima-facie overcharging case comes to the notice of National Pharmaceutical Pricing Authority (NPPA), NPPA initiates action by issuing Preliminary Notices to the Pharma companies seeking requisite information / details from them to examine the matter further and in confirmed cases of overcharging, demand notices are issued to the defaulting Pharma companies for depositing the overcharged amount with the Government.

During the last three financial years 2009-10, 2010-11 and the current year 2012-13 (upto October, 2012) there were 189 cases where fresh demand has been raised by NPPA in confirmed cases of overcharging as per year wise break up given below :

Life Saving Drugs are not defined in DPCO, 1995. NPPA, as an ongoing and regular exercise monitors the availability (shortages) of drugs in the country through Drugs Control Administration of State Governments. Whenever shortage is reported by the State Drug Controllers or comes to its notice otherwise, NPPA takes remedial steps for ensuring availability of drugs by impressing upon manufacturers to rush the stocks to the places of shortage. The shortages reported are the brand specific and in most cases equivalent substitutes are available in the market.

Apart from purchase of samples by the officers of NPPA from different parts of the country, complaints by individuals / NGOs and report from the State Drug Controllers are utilized to ensure compliance of the prices fixed / notified by the NPPA / Government. Price list submitted by the companies in Form V are scrutinized for the purpose. In case a company is found selling any scheduled formulation at a price higher than notified / approved by the NPPA / Government, action is taken against such company as per the provision of DPCO, 1995 for recovery of the overcharged amount.

The Drug Policy as amended from time to time also envisages making available quality medicines to the masses at a reasonable price.

Further, the Department of Pharmaceuticals has launched ‘Jan Aushadhi Campaign’ with the objective of making available medicines at affordable prices for all. Under this campaign less priced quality unbranded generic medicines are made available through Jan Aushadhi Stores. 145 Jan Aushadhi Stores have been opened in different States/UTs in the country as on 31.10.2012.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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DNM/NSK/NV

Drug price enforcement: NPPA issues notices and recovers overcharges, monitors shortages and enforces DPCO compliance. NPPA initiates inquiries via preliminary notices and, on confirmation, issues demand notices for recovery of overcharged amounts under DPCO, 1995; it enforces compliance by sampling, investigating complaints and state reports, scrutinising Form V price submissions, and monitors shortages, directing manufacturers to redistribute stocks while supporting affordable generic access through the Jan Aushadhi campaign.