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National Pharmaceutical Pricing Authority (NPPA)

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The National Pharmaceutical Pricing Authority (NPPA), is an independent body of experts under the Ministry of Chemicals and Fertilizers, formed in the year 1997 so as to implement and enforce the provisions of the Drugs Prices Control Order (DPCO) for regulating medicine prices in accordance with the powers delegated to it. NPPA is delegated with the powers to exercise the functions of the Central Government in respect of various paragraphs of the Drug Price Control Orders (DPCO) - DPCO, 1995 and now DPCO, 2013.

The functions of NPPA include fixation and revision of prices of scheduled drugs (those medicines included in Schedule I of the DPCO which are subject to price control) and formulations[1], Monitoring of prices of decontrolled drugs and formulations, Implementation and enforcement of the provisions of DPCO in accordance with the powers delegated, Monitoring the availability of drugs, identify shortages, taking remedial steps, etc. The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers.

All the powers of Government of pricing according to Essential Commodities Act have been delegated to it. Under DPCO, 2013 the powers to Review are vested with the Government.

For more details see here.

1.Bulk drug or Active pharmaceutical ingredients (API) means any pharmaceutical, chemical, biological or plant product including its salts, esters, isomers, analogues and derivatives, conforming to standards specified in the Drugs and Cosmetics Act, 1940 and which is used as such or as an ingredient in any formulation. On the other hand, "formulation" means a medicine processed out of or containing one or more drugs with or without use of any pharmaceutical aids, for internal or external use for or in the diagnosis, treatment, mitigation or prevention of disease and, but shall not include any AYUSH medicine. “Generic version of a medicine” means a formulation sold in pharmacopeial name or the name of the active pharmaceutical ingredient contained in the formulation, without any brand name.

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