The Task Force constituted by the Government under the chairmanship of Dr Pronab Sen, Principal advisor, planning commission to explore options other than price control for achieving the objective of making available life saving drugs at reasonable prices has recommended inter-alia, that in the long run both the functions of drug regulations and price control should be performed by the same agency and there should be an integrated regulatory system.

Keeping the above in view, it has inter-alia been proposed in the draft National Pharmaceutical Policy, 2006 that as an immediate step an independent and autonomous Central Drug Authority would be constituted in place of the present Central Drug Standard Control Organisation (CDSCO). In the long run, the proposal of merger of National Pharmaceutical Pricing Authority (NPPA) and the Central Drug Authority would be examined to form a National Authority on Drugs and Therapeutics (NADT) which will be integrated Regulatory Authority in the country.

This policy was submitted before the Cabinet for its approval. The Cabinet considered the proposal in its meeting held on 11.1.2007 and has referred the matter to a Group of Ministers (GOM). A GOM has since been constituted. This information was given by the Minister of State for Chemicals and Fertilizers and Parliamentary Affairs Shri BK Handique in a written reply in the Lok Sabha on Monday.