The Hindu Business Line : `Only 33 pc of medicines to be under price control'

"The 354 formulation drugs that are proposed to be brought under price control will form only eight per cent in value terms, while the already specified 74 bulk drugs account for 25 per cent. In all, only 33 per cent of the medicines are to be brought under price control," the Chemicals and Fertilisers Minister, Mr Ram Vilas Paswan, told newspersons here.

Pointing out that the industry need not worry about price control, as 67 per cent of the medicines would still be outside the ambit of the policy, Mr Paswan said that the policy was necessary to abide by the Supreme Court order of making essential medicines affordable to the public.

Draft Policy

"The Health Ministry had prepared the list of essential medicines and we are just implementing the orders," Mr Paswan said. He said the draft policy has already been circulated to various departments for comments. "Usually, once the draft is circulated, it can go to the Cabinet in 15 days for approval," he said.

Mr Paswan pointed out that there was a fundamental difference between the earlier price control order and the present proposal. "The earlier drug price control order aimed at ending monopoly on drugs by companies. This was done at two levels — at the bulk drugs and formulations. But the present one is aimed at controlling the prices of only the essential drugs," he said.

Japanese companies

Japanese chemicals and pharmaceutical companies have evinced interest to invest in India with the likes of Mitsubishi Chemicals already committing Rs 1,665-crore investment for capacity expansion at its Haldia unit, Mr Paswan said. "Eisai Chemicals expressed its willingness to set up a new manufacturing unit and R&D facility, which could be either at Vishakhapatnam or Indore," said Mr Paswan, who had visited Japan recently. He said the Japanese pharmaceutical industry also expressed a strong desire for forging collaboration with Indian counterparts for contract manufacturing and conducting clinical trials in India.

Mr Paswan said 35 Japanese companies have confirmed their participation at the India-Chem, 2006 to be held in Mumbai in November.