National Pharmaceutical Pricing Authority (NPPA)

Why in News?

More essential medicines to treat life-threatening ailments including heart problems, Hepatitis-C and cancer are set to become cheaper, with India’s drug pricing watchdog having capped prices of 51 drugs by as much as 53%.



  1. It is an organisation of the Government of India which was established, to 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.


  1. It is also tasked with recovering amounts overcharged by manufacturers for the controlled drugs from the consumers.


  • It also monitors the prices of decontrolled drugs.


Drug Price Control Orders (DPCO)

DPCO are issued by the Government, in the exercise of the powers conferred under  Essential Commodities Act, 1955, for enabling the Government to declare a ceiling price for essential and life saving medicines (as per a prescribed formula) so as to ensure that these medicines are available at a reasonable price to the general public.


National List of Essential Medicines (NLEM)

It is a list of medicines, prepared by the Ministry of Health and Family Welfare, which are considered essential in India.


The primary purpose of NLEM is to promote rational use of medicines considering the three important aspects i.e. cost, safety, and efficacy.


National Pharmaceutical Pricing Policy-2012

The objective of National Pharmaceutical Pricing Policy-2012 (NPPP-2012) is to put in place a regulatory framework for pricing of drugs so as to ensure availability of “essential medicines” – at reasonable prices and providing  opportunity for innovation and competition to support the growth of pharma industry.





Source-Indian Express