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Govt grants one-time exemption from revision of ceiling prices under NLEM

NLEM list is revised and the ceiling prices are fixed every five years. NLEM 2015, which was implemented from 2016 has ended in March 2021, however, sources told Moneycontrol that the deliberations for the preparing the new list was impacted due to COVID-19 pandemic.

July 19, 2021 / 09:14 PM IST
At present, around 374 medicines are part of NLEM which are subject to price controls.

At present, around 374 medicines are part of NLEM which are subject to price controls.

The government on July 19 granted one more exemption from revision of ceiling prices under the National List of Essential Medicines (NLEM) list.

"In exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955, the Central Government hereby grants the one time exemption from revision ceiling price under para 18(i) of the Drugs (Prices Control) Order, 2013 and to keep in abeyance the revision of ceiling prices after completion of 5 years term till NLEM 2021 is released by the Ministry of Health and Family Welfare," said a government notification issued by Rajneesh Tingal, Joint Secretary to the Government of India.

NLEM list is revised and the ceiling prices are fixed every five years. NLEM 2015, which was implemented from 2016 has ended in March 2021, however, sources told Moneycontrol that the deliberations for the preparing the new list was impacted due to COVID-19 pandemic.

The Health Ministry prepares a list of drugs eligible for price regulation, following which the Department of Pharmaceuticals, which comes under the Ministry of Chemicals and Fertilizers, incorporates them into Schedule 1 of DPCO. The Standing Committee on Affordable Medicines and Health Products (SCAMHP) will advise the drug price regulator the National Pharmaceutical Pricing Authority (NPPA) on vetting the list. The NPPA then fixes the prices of drugs in this Schedule.

At present, around 374 medicines are part of NLEM which are subject to price controls. About 18 percent of the drugs sold in India are under price controls.
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Jul 19, 2021 09:14 pm

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