F.No.13(70)/98-Div.III/NPPA

Government of India
Ministry of Chemicals and Fertilizers
National Pharmaceutical Pricing Authority
19th Floor, Jawahar Vyapar Bhawan
Tolstoy Marg,Janpath, New Delhi – 110001
Tel: 3701146, 3701145, 3701068 Fax: 3701144

New Delhi, Dated: 14th July, 99

PRESS RELEASE

Sub: Notification of norms for Conversion Cost, Packing Charges and Process Loss under DPCO, 1995.

The National Pharmaceutical Pricing Authority has notified the norms for Conversion Cost, Packing Charges and Process Loss under para 7 of Drugs Prices Control Order (DPCO), 1995 vide No. S.O.578(E) dated 13th July, 99. These norms come into force with immediate effect. As per para 7 of DPCO, 1995, the retail price of a formulation shall be calculated by the Government by considering the notified norms. For the purpose of working out these norms under DPCO, 1995, the Government had earlier constituted an Expert Committee under the Chairmanship of Dr. Ahmed Masood, the then Member (Technical) BICP on 24th April, 1995. The Committee, however, could not complete the study due to non-response to the questionnaire by Industry. The National Pharmaceutical Pricing Authority which has been established subsequently and inter alia delegated with the responsibility of notifying norms under DPCO, 1995, had again constituted another Expert Committee on 8th October, 1998 under the Chairmanship of Dr. S.M. Jharwal, the then Member Secretary, NPPA for the same purpose. However, in the absence of receipt of adequate information/ data from the industry, NPPA has worked out revised norms on ad-hoc basis by taking into account the escalation in prices of various related materials/factors. These norms shall be in force till fresh norms are worked out on the basis of data to be provided by the industry as per the questionnaires already sent to them. The manufacturers of Scheduled formulations intending to seek revision in the retail prices of formulations are required to submit applications to NPPA in Form-III/ Form IV of DPCO, 1995.

(Dr. P.V. Appaji)
Deputy Director (Tech)