The Union Cabinet on 30 October 2013 approved the five years Pharmaceuticals Purchase Policy (PPP). The PPP renewal has been approved to ensure finest utilization of the installed capacity of pharma of the Central Public Sector Enterprises (CPSEs).
As per the policy, 103 medicines were validated for five years from the date of the issue of the orders by the Department of Pharmaceuticals. The pricing of the products would be done by the National Pharmaceutical Pricing Authority (NPPA) following the cost based formulae, as per the Drugs Price Control Order. Uniform discount of 16 percent on all products would be available.
The policy extended only to the Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals, like the Hindustan Antibiotics, Indian Drugs and Pharmaceuticals, Karnataka Antibiotics and Pharmaceuticals, Rajasthan Drugs and Pharmaceuticals and Bengal Chemicals and Pharmaceuticals along with and their subsidiaries, where Governments holds minimum of 51 percent or more shares.
In the year 2006, the Cabinet approved the same type of policy for 102 medicines which are manufactured by the PSUs that expired in the year 2011.