Taking a pro-active stand to prevail upon the hiking of prices beyond the stipulated limits by the pharma companies, the National Pharmaceutical Pricing Authority (NPPA) has asked the companies to furnish the price list and supplementary price list as required under the provision of the DPCO.

“As per Paragraph 14 and 15 of DPCO’1995 every drug manufacturing and marketing unit is required to submit their price list/supplementary price list to the NPPA/Govt./Drug Controller and any other concerned. The submission of the price lists by the companies is mandatory. It is, however, noted that your company is not submitting their price list or supplementary price list regularly,” an official note sent by the NPPA said.

Sources in the NPPA revealed that the agency had decided to write to the organisations and their member companies as many companies were not following the instructions. Hence, it had decided to pursue the matter vigorously by going after the companies and action would be initiated for non-compliance of the instruction, sources added.

“In the union budget for the year 2012-13 Government has enhanced the excise duty from 5 per cent to 6 per cent. In many states, percentage of VAT also varied from 4 per cent to 5 per cent. It is therefore necessary for the manufacturer to submit their price list by incorporating the change with respect to excise duty and Vat,” the notice said.

“All manufacturer including SSI units are required to submit Form V regularly as per the provisions of DPCO’1995. It is noted that the consolidated price list of your company has not been received in NPPA so far. You are therefore directed to furnish the consolidated price list in Form V within fifteen days from the receipt of this letter for all products schedule and non-schedule manufactured and/or marketed by your company. It is also requested that the soft copy of Form V in CD may also be provided,” it said.

“Non-submission of the price list is a violation of provisions of DPCO’95 and a penal action including prosecution will be initiated against the defaulter company under the provisions of DPCO’1995 read with the provisions of E.C. Act 1955,” the NPPA said.

The agency has sent the letters to organisations like IDMA, OPPI with a request to ensure that their member companies comply with the instruction. Besides, the NPPA also asked the State Drug Controllers to ensure that the manufacturing units in their control will comply with the order and send Form V to the agency.