(a) whether the National Pharmaceuticals Pricing Authority (NPPA) had been fixing the prices
of all imported formulations;
(b) if so, the details thereof;
(c) whether several such imported formulations are being over-charged than the ones fixed by
NPPA;
(d) if so, the reasons therefor; and
(e) the action taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS AND MINISTER OF STATE IN THE
MINISTRY OF PARTLIAMENTARY AFFIRS (SHRI B.K. HANDIQUE)
(a) to (e) : The National Pharmaceutical Pricing Authority has been fixing prices of only the
Scheduled imported formulations under the provisions of the Drugs (Prices Control) Order, 1995.
As per para 7 of the Drugs (Prices Control) Order, 1995 (DPCO 95), in the case of a Scheduled
imported formulation, the landed cost shall form the basis for fixing its price alongwith such
margin to cover selling expenses and distribution expenses including interest and importer’s
profit which shall not exceed 50% of the landed cost. The “landed cost†means the cost of
import of a formulation inclusive of the customs duty and clearing charges.
Till date in one case one pharma company has deposited Rs.116.59 lacs towards overcharged
amount and Rs.6.95 lacs towards interest.