Preferential Purchase Policy for 102 drugs: Cabinet

New Delhi, July 27 (UNI) The Union Cabinet today gave its approval to the proposals relating to preferential purchase policy (PPP) for 102 drugs and pharmaceuticals exclusively from Pharma CPSUs and their subsidiaries by Central Departments, PSUs and autonomous bodies.

The PPP in respect of a maximum of 102 medicines would be valid for a period of five years and would be applicable to purchase of 102 drugs made by State Governments under health programmes which are funded by Government of India, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

Preference will be extend only to Pharma CPSEs and their subsidiaries -- where Pharma CPSEs own 51 per cent or above shareholding.

It would be applicable to maximum of 102 medicines as notified by Department of Chemicals&Petrochemicals from time to time.

The Purchasing Departments, PSUs and autonomous bodies may invite limited tenders from Pharma CPSEs and their subsidiaries or purchase directly from them at NPPA certified or notified price with a discount up to 35 per cent.

The existing annual Pharma market in the country is in the range of approximately Rs. 50,000 crores ( including exports of approximately Rs. 17,000 crores). Out of this, total purchases of Central Government Department [CGHS, Defence, Railways, ESIC, National Rural Health Mission (NRHM), National Aids Control Organization (NACO) etc. ] are estimated to be approximately Rs.

2,000 crores. While purchases of State Governments account for another Rs.1,500 to 2,000 crores per annum for their health programmes. The Pharma CPSEs can supply medicines to Government and its organisations at NPPA certified / notified rates with a discount up to 35 per cent.

The decision of the Cabinet will help Government Institutions in making available quality drugs to the beneficiaries under various Health Schemes. It will also help in optimum utilisation of assets of PSUs created with public funds.

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