The Right to Information Act is aimed to promote openness, transparency and accountability in Administration.
1. National Pharmaceutical Pricing Authority its functions & Duties
The National Pharmaceutical Pricing Authority (NPPA), an independent body of experts in the Ministry of Chemicals and Fertilizers, was formed by the Govt. of India vide Resolution published in the Gazette of India No.159 dated 29.08.1997.
Function of NPPA
(I)To implement and enforce the provisions of the Drugs (Price Control) Order DPCO in accordance with powers delegated to it.
(II) To undertake and/or sponsor relevant studies in respect of pricing of drugs/formulations.
(III) To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
(IV) To collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc. for bulk drugs and formulations.
(V) To deal with all legal matters arising out of the decisions of the Authority.
(VI) To render advice to the Central Government on changes/revisions in the drug policy.
(VII) To render assistance to the Central Government in parliamentary matters related to drug pricing.
2. Powers and Duties of Officers & Employees of NPPA
The general powers & duties of officers are as follows :–
To implement and enforce the provisions of Drug(Price Control) Order in accordance with the powers delegated by Department of Pharmaceuticals
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 render assistance to the Central Government in the parliamentary matters relating to the drug pricing.
3. The Procedure followed in decision making process including channels of supervision and accountablility
National Pharmaceuticals Pricing Policy (NPPP) was notified by the Government of India on 7th December, 2012. The key principles for regulation of prices of medicines as outlined in the NPPP are (i) essentiality of drugs, (ii) control of formulation prices only and (iii) market based pricing. The NPPP, 2012 in accordance with the principles of essentiality of medicines has adopted the National List of Essential Medicines 2011, which was declared by the Ministry of Health and Family Welfare for the purpose of price fixation. A total of 348 ‘active pharmaceutical ingredients’ (excluding repetitions) are listed in the NLEM 2011.
Pursuant to the announcement of National Pharmaceutical Pricing Policy, 2012, Government notified Drugs (Prices Control) Order, 2013 (DPCO, 2013) on 15th May, 2013. All the medicines specified in the National List of Essential Medicines 2011 (NLEM) have been included in the First Schedule of DPCO, 2013 and brought under price control. Under DPCO, 2013, prices of drugs are fixed on ‘Market based pricing’ methodology in accordance with the principles outlined in the NPPP, 2012.
The NLEM Core-Committee through a series of meetings and consultations across the country, deliberated and revised the National List of Essential Medicines (NLEM) 2011 as National List of Essential Medicines NLEM 2015 dated 10.03.2016 and now there are 377 medicines in NLEM 2015.
Under the DPCO, 2013, ceiling price of scheduled medicines is fixed based on the market based data, inter alia, by taking simple average prices of all those manufacturers who have market share more than or equal to 1% of total market turnover on the basis of Moving Annual Turnover (MAT) of a specified medicine. The ceiling price is derived by adding 16% margin on the simple average price to the retailer (PTR) for the specified medicine. As provided for under the Order, the local taxes if actually paid, wherever applicable on actual basis, will be added to the ceiling price to arrive at the Maximum Retail Price to the consumers.
NPPA has fixed the ceiling prices in respect of 851 medicines (including medicines for diabetes, cancer, cardiovascular diseases, Asthma, HIV, analgesics and antipyretics and TB etc). Upward revision in the prices of scheduled formulations is permissible to the extent of increase in the Wholesale Price Index (WPI) for the particular year. NPPA has revised the ceiling prices in respect of 851 scheduled drugs after incorporating WPI @ 3.43812 % for the year 2018 (w.e.f. 01.04.2018) in compliance with the provisions contained in para 16 of DPCO, 2013.
NPPA is also empowered, in case of extra-ordinary circumstances, if it considers necessary to do so in public interest, to fix the ceiling price or retail price of any drug for such period, as it may deem fit and where the ceiling price or retail price of the drug is already fixed and notified, the NPPA may allow an increase or decrease in the ceiling price or the retail price, as the case may be, irrespective of annual wholesale price index for that year.
NPPA has also fixed the retail price of 770 ‘new drugs’ (As on 04.07.2018) which fall within the purview of Para 2(u) of DPCO.2013) under para 5 of DPCO, 2013, since operationalisation of DPCO, 2013.
The prices are notified through Gazette Notifications which are also uploaded on NPPA’s website at www.nppaindia.nic.in.
NPPA is entrusted with the job of monitoring the availability of drugs and to identify shortages, if any, and to take remedial steps to make the drugs available. NPPA is carrying out this responsibility mainly through the State Drugs Controllers, NGOs and individuals. NPPA also give permission for discontinuation of scheduled medicines and also processes price exemption request received under Para 32 of DPCO, 2013.
NPPA is enforcing and implementing the prices of scheduled and non-scheduled formulations on the basis of reference received from State Drugs Controllers and purchase of sample from the open market. Action for recovery of the overcharged amount is taken as per the provisions of DPCO, 2013 and the overcharged amount is recovered along-with interest due thereon. In case the demand is challenged by the company in the Court of Law, the matter is persuaded by filing cases against the company.
4. The norms for the discharge of its functions
The Government notified DPCO, 2013 on 15th May, 2013 in supersession of DPCO, 1995. NPPA is governed by the provision of DPCO, 2013 which is available on the NPPA’s website
Salient features of DPCO, 2013.
(I) Drug formulations listed under the National List of Essential Medicines are under price control.
(II) Ceiling price calculations are based on ‘market based data’ as opposed to ‘cost based inputs’ under DPCO, 1995.
(III) Controls only drug formulation price as opposed to both bulk drugs and their formulation under DPCO, 1995.
Constitution of Authority
The constitution of NPPA is as under:
(I) Chairman (in the rank of Secretary/Addl. Secretary to Govt. of India).
(II) Member Secretary (in the rank of Joint Secretary to Govt. of India).
(III) Drugs Controller General (India), Deptt. of Health.
(IV) Economic Adviser, Deptt. of Economic Affairs
(V) Adviser (Cost), Deptt. of Expenditure
5. Statement of categories of documents that are held by it or under its control.
(I) Manual of Office Procedure.
(II) General Financial Rules (GFR).
(III) Delegation of Financial Power Rules (DFPR).
(IV) FR /SR
6. The rules, regulations, instruction, manuals and records, held by the Department or under its control or used by its control or used by its employees for discharging its functions:
(I) Documents related to of Authority Meeting
(II) Compendium of price of scheduled medicines
(III) Files related to fixation of ceiling price
(IV) Status of overcharging cases
(V) Monitoring of scheduled and non-scheduled formulation
(VI) Permission of discontinuation granted for scheduled medicines
7. The particulars of any arrangement that exists for consultation with or representation by the members of the public in relation to the formulation of its policy or implementation there.
Consultation made on various issues with the AIOCD, FICCI, OPPI, IDMA, CII, FOPE, IPA, AIDAN Ministry of Health & Family Welfare, DCG(I), NIPER for formulation of its policy or implementation thereof.
8. A statement of the boards councils, committees and other other bodies consisting of two or more persons constituted as its part or for the its advise and as to whether meetings of those boards councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public
The organization is conducting the Authority meetings at regular interval of one or two months. The minutes of meeting and outcome is posted on the website and is accessible to the public.
9. Directory of Officers & Employees
The Directory of Officers & Employees is available on NPPA’s website.
10. Monthly remuneration received of Officers & Employees(as on 01.06.2018)
The scale of pay in respect of various officers are as follows :–
|S no.||Name of Post||Existing Strength||Level of pay as per 7th CPC.|
|13||Steno Grade ‘D’||2||4|
|14||Staff Car Drivers||2||4|
11. Budget Allocation
Budgetary allocation head of account wise
|S no.||None Plan||Budget Estimates(In thousand of Rupees)|
|5||Travelling Allowance (D)||2000|
|6||Travelling Allowance (F)||500|
|8||Rent, Rates and Taxes||32500|
|9||Other Administrative Expenses||500|
|10||Professional Services Plan
Consumer Awareness,Publicity and Price
12. Concessions, The manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes.
There are no subsidy programmes being implemented by this office.
13. Concession, permits for Authorization granted
NPPA does not administer any scheme where grants, concessions, permit etc. are given
14. The Particulars of facilities available to citizens for obtaining information including the working hours of a library or reading room, if maintained for public use:
All information relating to working of NPPA are available on the website www.nppaindia.nic.in . NPPA has published a compendium containing prices of Scheduled formulations, under Drug (Price Control) Order, 2013, which is available on NPPA’s website. NPPA has also launched a facility for citizens named Pharma Jan Samadhan where consumers can lodge online complaints against availability of medicines, overpricing of medicines, sale of ‘new drugs’ without prior price approval (WPA) and refusal of supply or sale of medicines.
15. Name, Designation and other particulars of Central Public Information Officer
Name : Shri Rakesh Pandey
Designation : Dy. Director
Address : 5th Floor, YMCA Cultural Centre Building, 1, Jai Singh Road, New Delhi – 110 001
Tel Nos. : 23746793, 23345119(EPBAX)
Name : Kalyan Nag
Designation : Advisor
Address : 5th Floor, YMCA Cultural Centre Building, 1, Jai Singh Road, New Delhi – 110 001
Tel Nos. : 23746733, 23345119(EPBAX)