F.No.13(70)/98-Div.III/NPPA Government of India New Delhi, Dated: 14th July, 99 PRESS RELEASE
Sub:
Notification of norms for Conversion Cost, Packing
Charges and Process Loss under DPCO, 1995. The
National Pharmaceutical Pricing Authority has notified
the norms for Conversion Cost, Packing Charges and
Process Loss under para 7 of Drugs Prices Control Order
(DPCO), 1995 vide No. S.O.578(E) dated 13th July, 99.
These norms come into force with immediate effect. As per
para 7 of DPCO, 1995, the retail price of a formulation
shall be calculated by the Government by considering the
notified norms. For the purpose of working out these
norms under DPCO, 1995, the Government had earlier
constituted an Expert Committee under the Chairmanship of
Dr. Ahmed Masood, the then Member (Technical) BICP on
24th April, 1995. The Committee, however, could not
complete the study due to non-response to the
questionnaire by Industry. The National Pharmaceutical
Pricing Authority which has been established subsequently
and inter alia delegated with the responsibility of
notifying norms under DPCO, 1995, had again constituted
another Expert Committee on 8th October, 1998 under the
Chairmanship of Dr. S.M. Jharwal, the then Member
Secretary, NPPA for the same purpose. However, in the
absence of receipt of adequate information/ data from the
industry, NPPA has worked out revised norms on ad-hoc
basis by taking into account the escalation in prices of
various related materials/factors. These norms shall be
in force till fresh norms are worked out on the basis of
data to be provided by the industry as per the
questionnaires already sent to them. The manufacturers of
Scheduled formulations intending to seek revision in the
retail prices of formulations are required to submit
applications to NPPA in Form-III/ Form IV of DPCO, 1995. (Dr. P.V. Appaji) |