Ceiling Prices
Ceiling prices would be fixed for commonly marketed standard pack sizes
of price-controlled formulations and it would be obligatory for
all, including small scale units, to follow the price so
fixed..
22.7.4 SIMPLIFIED PROCEDURE
(i) An
independent body of experts, to be called the National Pharmaceutical
Pricing Authority, will be entrusted with the task of
price-fixation/revision and other related matters such as updating the
list of drugs under price control by inclusion and exclusion on the basis
of the established criteria/guidelines and would be empowered to take
final decisions. The Government would have the power of review. It would
also monitor the prices of decontrolled drugs and formulations and oversee
the implementation of the provisions of the Drugs (Prices Control)
Order.
(ii) The
time-frame for granting price approvals will be 2 months for formulations
and 4 months for bulk drugs from the date of receipt of the complete
prescribed information.
22.7.5 ENCOURAGEMENT TO
PRODUCTION FROM BASIC STAGE
The rate of
return in case of basic manufacture would be higher by 4 per cent over the
existing 14 per cent on net worth or 22 per cent on capital
employed.
22.8 SETTING UP OF
NATIONAL DRUG AUTHORITY
22.8.1 A National
Drug Authority would be set up by an Act of the Parliament, to be steered
by the Ministry of Health and Family Welfare, to look after the Quality
Control aspects, Rational Use of Drugs and related matters as outlined in
Paras 16-19 above.
22.8.2 For
strengthening the drug control system including GMP and for encouraging
R&D, a cess of 1% would be levied on production of drugs and
pharmaceuticals through legislation, details of which would be worked out
by the Ministry of Health and Family Welfare.
22.9 COORDINATION
BETWEEN MINISTRIES
A Coordination
Committee consisting of Secretaries of the Ministries/ Departments of
Commerce, Revenue, Health, Bio-technology and Industrial Development and
Chairman, Bureau of Industrial Costs and Prices will be set up under the
chairmanship of Secretary (Chemicals and Petrochemicals) for monitoring
the areas of key concern every quarter and for tracking effective and
timely action. The Chairman of the proposed National Pharmaceutical
Pricing Authority would also be co-opted on this committee, as and when it
is constituted.
22.10
OTHER MATTERS
The various
aspects relating to promotion of Ayurvedic, Unani, Sidha, Homeopathic and
traditional systems of medicines would be actively pursued and the
machinery for carrying out these tasks would be adequately strengthened.
To provide better focus to this important work, a separate Department, to
look after all matters relating to development and promotion of these
systems of medicines, would be created.
Careers