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Pharmaceuticals Purchase Policy (PPP) approved
Oct 31, 2013

The Pharmaceuticals Purchase Policy (PPP) has been approved by the Union Cabinet for a period of five years. 

The renewal of the PPP aim at ensuring optimum utilization of the installed capacity of the pharma Central Public Sector Enterprises and ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation. 

The salient features of the Pharmaceuticals Purchase Policy (PPP), are as follows: 

i) Pharmaceuticals Purchase Policy will be valid for 103 medicines from the date of issue of orders by Department of Pharmaceuticals. 

ii) The Policy will be extended only to Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals. It includes companies such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51% or above shares. 

iii) PPP will be applicable to the medicines purchased by Central Government departments, their Public Sector Undertakings, Autonomous Bodies, State Governments under Health Programmes funded by Government of India such as the National Rural Health Mission, etc. 

iv) The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule `M` of the Drugs & Cosmetic Rules. 

v) The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula. 

vi) A uniform discount of 16% would be extended to all products. All the taxeswould have to be passed on to buyers. 

vii) Annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013. 

viii) If the pharma company failed to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers and pharma CPSEs or their subsidiaries would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract. 

 

 


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