THE MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (K. RAHMAN KHAN)
(a) to (c) : The 74 bulk drugs specified in the First Schedule of the
Drugs (Prices Control) Order, 1995 (DPCO, 95) and the formulations
based thereon are under price control and their prices are fixed/revised
by the National Pharmaceutical Pricing Authority (NPPA) in accordance
with the provisions of the DPCO, 95. These drugs have been identified
for inclusion under price control in the DPCO, 95 on the basis of
criteria mentioned in the `Modifications in Drug Policy, 1986`,
announced in September, 1994. These criteria take into account
the extent of usage and the market competition of various drugs.
Prices of non-Scheduled formulations are fixed by the
manufacturers themselves keeping in view the various factors like cost
of production, marketing/selling expenses, R&D expenses, trade
commission, market competition, product innovation, product quality
etc. The Government takes corrective measures where the public
interest is found to be adversely affected.