Press Information Bureau
Government of India
Ministry of Chemicals and Fertilizers
24-September-2014 19:07 IST
NPPA Powers Not Withdrawn

Press Note

Certain sections of media have carried headlines which indicate that the Government has withdrawn the power of NPPA to fix /revise prices under para 19 of DPCO, 2013; and also that Government has directed NPPA to withdraw the notifications dated 10.07.2014 fixing prices of 108 non-scheduled drugs.

1. In this connection it may be stated that the correct factual position is as under:

“Consequent to notification of National Pharmaceuticals Pricing Policy- 2012 (NPPP-2012) on 07.12.2012 and notification of Drugs Price Control Order, 2013 (DPCO, 2013), the powers of the Government were delegated to NPPA on 30.05.2013. NPPA on 29.05.2014 came out with internal guidelines dated 29.05.214 on fixation/revision of prices of scheduled and non-scheduled formulations under para 19 of DPCO, 2013. Consequent to that NPPA issued various orders dated 10.07.2014 fixing prices under exercise of powers of para 19 of DPCO, 2013.

2. The abovesaid guidelines dated 29.05.2014 and orders dated 10.07.2014 have been challenged in Bombay and Delhi High Court. The Union of India and NPPA which have been made respondents, after careful consideration in consultation with the M/o Law and Justice had decided to convey to the Hon’ble Courts that the guidelines dated 29.05.2014 are to be withdrawn.

3. The action of NPPA dated 22.09.2014 needs to be seen in the above context. The Government has neither withdrawn the powers delegated to NPPA on 30.05.2013 nor NPPA has been directed to withdraw the orders dated 10.07.2014.”