F.No.17(66)/2006-Div.III/NPPA
Government of India
Ministry of Chemicals & Fertilizers
Department of Chemicals & Petrochemicals
National Pharmaceutical Pricing Authority

5th Floor, YMCA Cultural Center Building,
1, Jai Singh Road, New Delhi-110 001
Phone : 23345120/23345116/23345118/23345122
Fax : 23345119
Dated : 3rd May, 2006

CIRCULAR

The National Pharmaceutical Pricing Authority fixes / revises maximum sale price of scheduled bulk drugs and also retail price and ceiling prices of scheduled formulations from time to time in exercise of the powers, conferred by paragraph 3 (1), paragraphs 8(1)(2)(4) , paragraphs 9(1)(2) and paragraph 11 of the Drugs (Prices Control) Order, 1995, read with S.O.No.637(E) dated 4th September, 1997 issued by the Government in the Ministry of Chemicals and Fertilizers. As per paragraph 14 (1) of the Drugs (Prices Control) Order, 1995, every manufacturer or importer shall carry into effect the price of a bulk drug or formulation, as the case may be , as fixed / revised by the Government from time to time , within 15 days from the date of notification in the Official Gazette or receipt of the order of the Government in this behalf by such manufacturer or importer. Paragraph 14 (3) of the Drugs (Prices Control) Order, 1995 provides that every manufacturer or importer shall issue a price list and supplementary price list, if required, in Form V to the dealers , State Drugs Controllers and the Government indicating reference to such price fixation or revision as covered by the order or Gazette notification issued by the Government from time to time.

Even though the above provisions are mandatory, it has been the priactice of NPPA to write to the drug manufacturers individually to furnish the fact of implementation of the notified price and the supplementary price list. Since the provisions are mandatory, it has been decided now not to write to any manufacturer or importer separately for submitting supplementary price list implementing the prices of scheduled bulk drugs or formulations so fixed or revised by the NPPA / Govt. from time to time. All the concerned manufacturers and importers of drugs and formulations are directed to comply with the above provisions of the Drugs (Prices Control) Order, 1995 and submit supplementary price lists / price implemention reports from time to time, as and when the circumstances so demand.

If the provisions of paragraph 14(1) and 14(3) are not followed by any drug unit, action will be initiated against such unit as per the provisions of DPCO, 1995 read with the Essential Commodities Act, 1955.

Yours faithfully

Sd/-( T. K. Majumdar )
Dy. Director