The Central govt has renewed the Pharmaceuticals Purchase Policy (PPP) for pharmaceutical Central Public Sector Enterprises (CPSEs) for a period of five years with a view to utilizing the capacity of the PSUs to the optimum level.

“The renewal of the PPP aims at ensuring optimum utilization of the installed capacity of the pharma Central Public Sector Enterprises (CPSEs). It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation,” said an official release. The Union Cabinet on Wednesday approved the policy which was first introduced a few years ago to help the struggling pharma PSUs.

The purchase policy will be in respect of 103 medicines and will be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals (DoP). The policy will extend only to CPSEs under the administrative control of DoP such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51 per cent or above shares, the release.

“This would be applicable to purchases by Central government departments, their Public Sector Undertakings, and Autonomous Bodies, etc. This would also be applicable to purchase of medicines by State governments under Health Programmes funded by Government of India such as the National Rural Health Mission etc. The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula, as mentioned in the Drugs Price Control Order, 95. A uniform discount of 16 per cent would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers,” it said.

“Annual revision of prices would be linked to wholesale price index as per provisions contained in Drugs Prices Control Order, 2013. The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule M of the Drugs & Cosmetic Rules. In case pharma CPSEs and their subsidiaries fail to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers. If the pharma CPSEs or their subsidiaries fail to perform as per the purchase order, they would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract. The list of medicines may be reviewed and revised by the DoP as per requirement,” the Government said.