Professional Documents
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Drug and Price Control Order 1995
Drug and Price Control Order 1995
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INTRODUCTION:
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HISTORY OF DPCO
1.
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1970
18
1979
347
1987
142
1995
74
2013
348 Medicines
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SCHEDULES OF DPCO
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SCHEDULE: I
It
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SCHEDULE: II
It
i.
ii.
iii.
iv.
v.
vi.
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SCHEDULE:III
It specifies maximum pre-tax return on sales turnover of
manufacturers or importers of different formulations.
There are three categories of units for this purpose.
(i) Category A : Units with turnover of more than 6 crores
per annum
(ii) Category B : Units with turnover between Rs. 1 crore to
Rs.6 crores per annum
(iii) Category C : Units with turnover of less than 1 crore
per annum.
It
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10
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Cont
While
drug :
the Government shall take into consideration a
post-tax return of 14% on net worth or,
a return of 22% on capital employed or,
in respect, of a new plant an internal rate of return
of 12% based on long term marginal costing
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Cont
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a)
b)
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a)
b)
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i.
ii.
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Cont
"MAPE" (Maximum Aflowable Post-manufacturing
Expenses) means all costs incurred by a
manufacturer from the stage of ex-factory cost to
retailing and includes trade margin and margin for
the manufacturer and it shall not exceed one hundred
per cent for indigenously manufactured Scheduled
formulations;
"E.D." means excise duty
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Government fixes or revises the price of any bulk drug and manufacturer
utilises such bulk drug in his Scheduled formulations he shall, within
thirty days of such fixation or revision, make an application to the
Government, in Form-III for price revision of all such formulations and
the Government may, if it considers necessary, fix or revise the price of
such formulation.
The retail price of a formulation once fixed by the Government shall not
be increased by any manufacturer prior approval of the Government.
Any manufacturer, who desires revision of the retail price of a
formulation shall make an application to the, Government in Form III or
Form IV. Government shall after making such enquiry, as it deems fit
within a period of two months from the date of receipt of the complete
information, fix a revised price for such formulation or reject the
application for revision for reasons to be recorded in writing.
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Cont
No
No
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22
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Maintenance of Records:
Every
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Power to review :
Any
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Penalties:
Any
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