In a bid to tackle overpricing in the pharmaceutical sector, the government is planning an amnesty scheme to recover dues from pharmaceutical companies, CNBC Aawaz reported.
The National Pharmaceutical Pricing Authority (NPPA), responsible for overseeing drug pricing, has identified a substantial 2,200 cases of overpricing within the pharmaceutical industry.
The amnesty scheme proposes relief for pharmaceutical companies, offering waivers on interest and penalties associated with the alleged overpricing issues.
The primary objective of the amnesty scheme is to recover outstanding dues from these companies. It is estimated that the government aims to retrieve around Rs. 5,000 to 6,000 crore through this initiative.
How are drug prices regulated?
Periodically, the Health Ministry collaborates with experts to create the National List of Essential Medicines (NLEM). This list includes medications vital for treating prevalent conditions and falls under price control through the Drug Price Control Order (DPCO).