About:

The National Pharmaceutical Pricing Authority was set up as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.

Functions of NPPA:

• To implement and enforce the provisions of the Drugs Price Control Order (DPCO).
• To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
• To collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc. for bulk drugs and formulations.
• To render advice to the Central Government on changes/revisions in the drug policy.
• The NPPA currently fixes prices of drugs placed in the National List of Essential Medicines (NLEM) under Schedule-I of the DPCO. 
• Non-scheduled drugs are allowed an increase of up to 10 per cent in prices every year, which is monitored by the NPPA.
• NPPA can also fix the price for non-scheduled drugs by invoking extraordinary powers in public interest, under the DPCO, 2013.

Why in News?

• The Ministry of Health & Family Welfare (MoH&FW) has identified a list of critical medical equipment for the Covid-19 and has requested the National Pharmaceutical Pricing Authority to ensure availability of the same in the country.
• NPPA, in exercise of powers conferred under DPCO, 2013, has called for price related data from manufacturers/importers of (i) Pulse Oximeter and (ii) Oxygen Concentrator to ensure that prices existing as on 1st April 2020 should not be increased more than 10% in a year.