Govt approves purchase of 102 drugs from CPSUs for hospitals

New Delhi, Nov 7 (UNI) The Government has approved the proposal with regard to preferential purchase of 102 drugs/pharmaceuticals exclusively from Pharma CPSUs and their subsidiaries by departments, hospitals and PSUs of the Central Government, to help in reviving these units and also in making drugs available at reasonable rates to the Government hospitals.

Addressing the Annual Economic Editors' Conference 2006 here today, Chemicals and Fertilisers Minister Ram Vilas Paswan said that MRP inclusive of all local taxes and printing of names of medicine, manufacturing date, expiry date in both English and Hindi has been made effective from October 2, 2006.

He said, on his appeal, the pharma companies have agreed to voluntarily restrict the trade margins for generic medicines to 15 per cent for wholesalers and 35 per cent for retailers. As a result of this voluntary cap the prices of about 886 medicines have been reduced by the manufacturers from two to 74 per cent.

Mr Paswan informed that a new Act, Drugs (Prices Regulation and Control) Act is proposed to be enacted to have effective control on prices, production, distribution and supply of medicines. The Act would replace the existing Essential Commodities Act and would empower the Government to impose a price or limit the increase in price or control the price of medicines in any manner.

He said reduced prices of 886 medicines, as per the companies, would be effective by November 15. If the prices did not show any reduction, the Government would notify the same anytime after that date for the benefit of the common man.

Mr Paswan made it clear that the Government does not have any mechanism to fix the prices of drugs in any manner except the 354 drugs which are declared essential drugs by the Health Ministry.

The Department would set up Drug Banks at all district levels for free medicines to the people Below Poverty Line and a proposal is also underway to start a Cancer Medicine Assistance Scheme in all the major Cancer Hospitals of the country. Through this scheme medicines would be provided at 50 per cent of the market price to all cancer patients, BPL families, handicapped persons and old citizens would be given these free of cost, he added.

The Minister informed that of the Rs 35,000 crore revenue of pharmaceutical industry in India, the public sector units contribute medicines worth only Rs 250 crore.

He said the Government has approved revival plan of Hindustan Antibiotics Ltd (HAL) and is also contemplating revival of Bengal Chemicals and Pharmaceuticals Ltd, Kolkata and Indian Drugs Pharmaceutical Ltd, Gurgaon.

The draft National Policy of Petrochemicals has been finalised and has been presented to the Committee of Secretaries, he added.

UNI BBS CS DB1854