The proposal to set up DPCO cells in all States to strengthen the NPPA system of monitoring drug prices fixed by it is likely to be cleared by the Planning Commission under the XIth Plan.

The NPPA which has been finding tough to gather samples and monitor the prices of drugs in all corners of the country, has been pushing the proposal for sometime now. The Chemical Ministry has also supported the move, mooted on the lines of the cell in Karnataka, and the Plan panel may take a favourable stand while clearing the XIth Plan, now being finalized, sources said.

The cells will ensure implementation of prices fixed/revised by NPPA from time to time, detect cases of overcharging and forward the same to NPPA for further action, and follow up the overcharging cases for recovery of overcharged amount. They would also ensure availability of data from manufacturing units, where units fail to provide data/information for NPPA.

At present, the NPPA has to send its officers from Delhi to collect samples on a routine basis from different parts of the country. By the time, the NPPA takes action, most of erring companies get away with lots of profits. During the period from April to December last year, the NPPA collected samples of 3603 brands and found that overcharging takes place in case of about 87 per cent of the samples.

The Parliamentary Standing Committee on Chemicals and Fertilisers also endorsed the need for such cells and wanted the Centre to expedite the moves in a time-bound manner in this regard for proper monitoring of drug prices. Karnataka government set up a cell in 1998 and has been working successfully since then.

The idea of creation of a DPCO cell in each state has also been supported by the Task Force under the Chairmanship of Dr Pronab Sen, Principal Adviser in its report submitted to the Government on September 20 in 2005. The issue of creation of DPCO cell in all States have been included as part of the draft National Pharmaceutical Policy, 2006, now pending before the Group of Ministers. If the Planning Commission gives the green signal, the cells would be set up during the early phase of the Plan itself, independent of the status of the proposed policy, sources said.