New Delhi [India], Nov 21 (ANI): The Union Cabinet on Wednesday approved the extension of Pharmaceuticals Purchase Policy (PPP) for pharmaceutical Central Public Sector Undertakings (CPSUs) till their closure or strategic disinvestment.
An official release said that extension or renewal of the policy would help the pharma CPSUs in optimum utilization of their existing facilities.
Pharmaceuticals Purchase Policy (PPP) was approved by the Cabinet in 2013 for five years in respect of 103 medicines manufactured by pharma CPSUs and their subsidiaries.
The policy is applicable to purchases by central/ state government departments and their public sector undertakings.
The pricing of the products is done by the National Pharmaceutical Pricing Authority (NPPA). The term of the policy expired in 2018.
Meanwhile, Cabinet decided in 2016 to close Indian Drugs and Pharmaceutical Limited (IDPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and strategically sell Hindustan Antibiotics Limited (HAL) and Bengal Chemicals and Pharmaceutical Limited (BCPL), after meeting their liabilities from proceeds of the sale of their surplus land to government agencies.
The Cabinet modified its decision in August this year permitting to sell surplus land as per revised Department of Public Enterprises guidelines. Separately, Cabinet Committee on Economic Affairs (CCEA) decided in 2017 for disinvestment of 100 per cent central government equity in the fifth pharma CPSU, namely Karnataka Antibiotics and Pharmaceuticals Limited (KAPL).
"It has been proposed to extend the policy till final closure or sale of pharma CPSUs," the release said (ANI).