NPPA is an organization of the Government of India which was established, inter alia, to fix/ revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995. The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers. It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.
Functions of National Pharmaceutical Pricing Authority
- To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
- To deal with all legal matters arising out of the decisions of the Authority;
- To monitor the availability of drugs, identify shortages, if any, and to take remedial steps;
- To collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations;
- To undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals;
- To recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government;
- To render advice to the Central Government on changes/ revisions in the drug policy;
- To render assistance to the Central Government in the parliamentary matters relating to the drug pricing.