Cabinet approves extension of pharmaceuticals purchase policy

News:The Union Cabinet has approved the extension/renewal of Pharmaceuticals Purchase Policy(PPP).


About the Policy:

  • Pharmaceuticals Purchase Policy(PPP) was approved by the Cabinet in 2013 for a period of five years in respect of 103 medicines manufactured by pharma CPSUs and their subsidiaries.
  • The policy is applicable to purchases by Central/ State Government departments and their Public Sector Undertakings.
  • The pricing of the products is done by National Pharmaceutical Pricing Authority(NPPA).
  • The procuring entity can purchase from Pharma CPSUs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule ‘M’ of the Drugs & Cosmetic Rules.
  • Further,the government has added one additional product namely Alcoholic Hand Disinfectant(AHD) to the existing list of 103 medicines.

Additional information:

About National Pharmaceutical Pricing Authority(NPPA):

  • NPPA is an independent body set up in 1997 under Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
  • Its mandate is to fix/revise controlled bulk drugs prices and formulations, enforce prices and availability of medicines under the Drug(Price Control) order, 2013.
  • The functions of NPPA are:(a) To implement and enforce the provisions of the Drugs (Prices Control) Order (b) Deal with all legal matters arising out of the decisions of the Authority (C) To monitor the availability of drugs, identify shortages and (d)To collect/ maintain data on production, exports and imports, profitability of companies etc, for bulk drugs and formulation.