The Cabinet is likely to consider a purchase policy for pharmaceutical products in its meeting on Wednesday.
The proposed policy would be applicable to purchases by Central Government departments and their public sector undertakings and autonomous bodies.
Once approved, this will benefit pharma PSUs, including Indian Drugs and Pharmaceuticals Ltd, Hindustan Antibiotics, Bengal Chemicals and Pharmaceuticals, and Karnataka Antibiotics & Pharmaceuticals and Rajasthan Drugs and Pharmaceuticals.
“Pharmaceutical purchase policy in respect of 103 medicines would be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals,” a senior Government official told Business Line.
The pricing of products under this scheme is proposed to be done by National Pharmaceutical Pricing Authority using cost-based formula. Further, a discount of 16 per cent is likely to be extended to all the products, while the taxes would be passed on to buyers.
In 2006, the Cabinet had approved a similar policy for 102 medicines manufactured by PSUs, which expired in 2011. This new scheme is likely to help several public sector pharma companies, which started making losses after the earlier policy lapsed in 2011.