**Summary of Regulation for Affordable Medicines and Private Hospitals**
**Overview and Authority**
The Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, regulates drug prices across India through the Drugs (Prices Control) Order 2013 (DPCO, 2013). The National Pharmaceutical Pricing Authority (NPPA) is the body responsible for implementing these provisions and monitoring price compliance.
**Pricing Regulations**
The NPPA maintains drug affordability through the following mechanisms:
* **Scheduled Formulations:** The NPPA fixes ceiling prices for formulations listed in Schedule-I of the DPCO, 2013.
* **New Drugs:** Retail prices for "new drugs," as defined in para 2(1)(u) of the DPCO, 2013, are fixed by the authority.
* **Non-Scheduled Formulations:** Manufacturers are prohibited from increasing the Maximum Retail Price (MRP) of non-scheduled formulations by more than 10% within any 12-month period.
* **Public Interest Provisions:** Under para 19 of the DPCO, 2013, the NPPA has the authority to fix ceiling or retail prices for any drug under extraordinary circumstances in the interest of the public.
**Regulation of Private Hospitals**
The price regulations established under the DPCO, 2013, apply equally to private hospitals selling medicines and formulations. The NPPA actively monitors these prices, and any instances of overcharging are addressed according to the provisions of the 2013 Order.
**Source Information**
This information was provided on March 17, 2026, by the Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written response to the Rajya Sabha.
**Reference Data:**
* **Release ID:** 2241165
* **Location:** PIB Delhi
* **Department:** Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers
Key Entities Referenced
Drugs (Prices Control) Order 2013 (DPCO, 2013): The primary regulatory framework used to fix ceiling prices of scheduled formulations and monitor retail prices of drugs in India.
National Pharmaceutical Pricing Authority (NPPA): The regulatory body responsible for fixing ceiling and retail prices of medicines and monitoring instances of overcharging by manufacturers and hospitals.
Department of Pharmaceuticals: The administrative department under the Ministry of Chemicals and Fertilizers responsible for the policy and regulation of the pharmaceutical sector.
Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals
Affordable medicines and regulation of private
hospitals
Posted On: 17 MAR 2026 3:25PM by PIB Delhi
Prices of drugs are regulated as per the provisions of the Drugs (Prices Control) Order 2013 (DPCO,
2013) across the country. As per extant provisions of DPCO 2013, the National Pharmaceutical Pricing
Authority (NPPA) fixes the ceiling prices of formulations specified in Schedule-I to DPCO, 2013 and
retail prices of new drugs as defined in para 2(1)(u) of DPCO, 2013. Further, in case of non-scheduled
formulations, manufacturers are required to not increase their maximum retail price (MRP) of a
formulation by more than ten percent of the MRP of that formulation during the preceding 12 months. In
addition, NPPA also fixes ceiling or retail prices of any drug in case of extra-ordinary circumstances and
in public interest under para 19 of DPCO, 2013. The price regulations under DPCO, 2013 are equally
applicable to private hospital selling medicines/formulations. NPPA monitors the prices of drugs and
instances of overcharging are dealt with as per the relevant provisions of DPCO, 2013.
This information was given by Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a
written reply in the Rajya Sabha today.
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