F.No. 8(4)/2004-DP/NPPA-Div.-II

National Pharmaceutical Pricing Authority
Ministry of Chemicals & Fertilizers
Government of India

5th Floor, YMCA Cultural Center Building,
1, Jai Singh Road, New Delhi-110 001
Dated : 12th August, 2004

Explanatory Note

In pursuance of para 7 of the Drugs (Prices Control) Order,1995 read with S.O. 637(E) dated the 4th September , 1997 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority (NPPA) has notified the Norms for Conversion Cost, Packing Charges and Process Loss of materials vide S.O. No. 913 (E) dated 11.08.2004. A copy of the said notification showing the norms applicable for different type of dosage forms and packaging is enclosed herewith. These prescribed norms shall come into force with immediate effect.

These norms have been notified based on a comprehensive study carried out by the Cost Account Branch of Ministry of Finance. While finalizing the study, the Cost Account Branch has applied established procedures and principles of costing. Norms have been prescribed for certain category of items for the first time. The norms for Conversion Cost and Packing Charges by and large have increased over the existing ones while the norms for process loss of materials have come down for all category of items.

The National Pharmaceutical Pricing Authority has fixed / revised the prices in respect of 11 formulation packs, imported in finished form on 11h August, 2004 based on the bulk drug Insulin and Methyl Prednisolone Sodium Succinate on the basis of applications received from M/s. Novo Nordisk and M/s. Pharmacia Ltd. respectively.

These prices have been fixed/ revised in accordance with the provisions of the Drugs (Prices Control) Order (DPCO), 1995 and as per the established criteria and guidelines. A copy of the statement showing the notified prices is enclosed.

The prices fixed / revised would become effective within 15 days from the date of notification in the official gazette or the receipt of the Non-ceiling, price (NCP) Order of the NPPA in this behalf, as per Para 14(1) of DPCO, 1995.   Necessary revised price list is to be issued by the manufacturers/importers required under sub paragraph (3) of paragraph 14 of the DPCO, 1995. Accordingly, as per the provisions of the DPCO, the revised price list in Form-V is to be furnished by the concerned manufacturer(s) to the government and NPPA, State Drug Control Authorities and distributors, wholesalers and retailers or any other agent.

(JAGDISH KUMAR)
Dy. Director