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NPPA is an organization of the Government of India which was established, inter alia, to fix/ revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995.
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The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers.
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It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.
Functions of National Pharmaceutical Pricing Authority
- To implement and enforce the provisions of the Drugs (Prices Control) Order in accordance with the powers delegated to it.
- to deal with all legal matters arising out of the decisions of the Authority;
- to monitor the availability of drugs, identify shortages, if any, and to take remedial steps;
- to collect/ maintain data on production, exports and imports, market share of individual companies, profitability of companies etc, for bulk drugs and formulations;
- to undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals;
- to recruit/ appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government;
- to render advice to the Central Government on changes/ revisions in the drug policy;
- to render assistance to the Central Government in the parliamentary matters relating to the drug pricing.
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