Note on Drugs Policy to be sent to Cabinet ''within a week''

New Delhi, Aug 11 (UNI) A detailed note on the pharmaceutical policy, covering the entire gamut of drugs manufacturing and price fixation, would be sent to the Union Cabinet ''within a week'' for its consideration and approval, it was officially announced today.

Replying to a query in the Rajya Sabha, Chemicals and Fertilisers Minister Ram Vilas Paswan said different ministries had sent their replies on the note on pharmaceutical policy prepared by his ministry.

''We are going to submit it to the Cabinet within a week,'' he informed.

Mr Paswan said the note prepared by his ministry was in tune with the guidelines embodied in the Common Minimum Programme (CMP) and included issues like increasing the health sector expenditure from 0.9 per cent to 2-3 per cent in the next five years, providing life-saving drugs at affordable prices and ensuring health insurance to the people below the poverty line.

The minister said he had also sought the Cabinet approval for reducing the excise duty on drugs from 16 per cent to eight per cent.

With regard to the health insurance cover to the five crore BPL families in the country, he pointed out that it would entail an expenditure of Rs 3000 crore annually.

''This is not a big amount for the Central government and it would provide health insurance to the poor tune of Rs 35,000,'' he added.

Replying to a query whether manufacturing companies were free to fix the minimum retail price (MRP) of drugs manufactured in tax-exempted states, he said 74 bulk drugs specified in the First Schedule of the Drugs (Prices Control) Order (DPCO), 1995 and the formulations based thereon, were under price control.

''Their prices are fixed and revised by the Pharmaceutical Pricing Authority (NPPA) in accordance with the provisions of the DPCO, 1995,'' The minister said no one could sell Scheduled drugs and formulations at a price more than the price fixed by the NPPA, whether it was manufactured in excise-exempt zones or non-exempt zones.

However, in respect of non-Scheduled formulations, the manufacturers were free to fix the prices without seeking approval of the government, he pointed out.

Mr Paswan said the government had decided to extend the exemption of tax holiday for setting up pharmaceutical plants by three years -- from 2017 to 2020, saying the decision was taken in view of the fact that setting up of such plants needed a long time.

UNI SKS PK HS1257