The National Pharmaceutical Pricing Authority (NPPA) has revised the conversion cost (CC) and packing charges (PC) norms for the first time since 1999. The NPPA has notified the new norms on August 11, 2004.
The much awaited revision has been carried out after receiving inputs from the Cost and Accounting Wing of Union Finance Ministry a couple of months ago. Annual revision of CC & PC norms is mandatory under para 7 of DPCO, 1995. It is required to fix the norms of conversion cost, packing charges and process loss and notify the same in the Official Gazette every year. Since the norms were not revised, the NPPA has been re-notifying the 1999 norms during the last four years.