National Pharmaceutical Pricing Authority (NPPA)

7.National Pharmaceutical Pricing Authority (NPPA): It fixes ceiling prices for drugs under Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO, 2013).

  • About NPPA: It is a regulatory body control by the government agency and regulating prices of pharmaceutical drugs and medical devices to ensure affordability.
  • Establishment: Constituted on 29th August 1997 as an attached office under the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.
  • Power: An independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.
  • Drug Price Control Order (DPCO):

oIt is an order issued by the Government of India under Essential Commodities Act, 1955 to regulate the prices of drugs. 

oIt provides for the list of price-controlled drugs, Procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., and penalties for contravention of provisions etc. 

  • Recent Developments: Support for Domestic Manufacturing under Production Linked Incentive (PLI) Scheme for Pharmaceuticals, approx. 54 anti-cancer drugs are being manufactured under the scheme.
  • Government Health Schemes & Financial Assistance:

oAyushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): Provides ₹5 lakh per family per year for hospitalisation to 60 crore beneficiaries.

oJan Aushadhi Kendras: Provide quality medicines at 50-80% lower prices than branded medicines.

oAffordable Medicines and Reliable Implants for Treatment (AMRIT): Offers medicines, implants, and surgical disposables at up to 50% discount via AMRIT Pharmacy stores.

oRashtriya Arogya Nidhi (RAN) & Health Minister’s Discretionary Grant (HMDG): Cancer patients (BPL families) receive up to ₹15 lakh assistance under Health Minister’s Cancer Patient Fund (RAN).