- NPPA is an independent body under Department of Pharmaceuticals under the Union Ministry of Chemicals and Fertilizers.
- Its functions are to:
- fix/revise the controlled bulk drugs prices and formulations,
- enforce prices and availability of the medicines under the Drugs (Prices Control) Order, 1995/2013,
- recover amounts overcharged by manufacturers for the controlled drugs from the consumers
- monitor the prices of decontrolled drugs in order to keep them at reasonable levels.
- NPPA fixes ceiling price of essential medicines that are listed in Schedule I of DPCO, 2013.
- The calculation of prices cap for essential drugs is based on simple average of all medicines in particular therapeutic segment with sales of more than 1%.
- Medicines that are not under price control, manufacturers are allowed to increase the maximum retail price by 10% annually.