National Pharmaceuticals Pricing Authority

#GS2 #Governance #Health 

On the foundation day of  National Pharmaceuticals Pricing Authority (NPPA) Union Minister of Chemicals and Fertilisers has congratulated NPPA “for working tirelessly to ensure availability of life-saving drugs at reasonable prices consistently for affordable health care system to all citizens”. 

Role of NPPA in COVID-19 

  • Stakeholder consultation with medical devices industry associations and civil society groups was held by the NPPA wherein it was stressed that all the manufacturers and importers of critical medical equipment shall ensure sufficient availability of the same.
  • It was reiterated that all the medical devices have come under price regulation accordingly, a price increase of medical devices would be monitored.
  • The NPPA told the industry that it was not “business as usual” and not the time to profiteer. The Medical Devices Industry Associations have been urged to bring down the retail price of critical equipment in the public interest in the prevailing situation as has been done by the manufacturers/importers of N-95 masks.


About National Pharmaceutical Pricing Authority(NPPA)


  • The National Pharmaceutical Pricing Authority (NPPA), is an independent body of experts under the Ministry of Chemicals and Fertilisers, 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, 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 organisation 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 the Essential Commodities Act have been delegated to it. Under DPCO, 2013 the powers to Review are vested with the Government.


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