In a written reply to a question in Rajya Sabha, Union Chemicals and Fertilisers Minister Ram Vilas Paswan said the government was "in consultation with various stakeholders examining the recommendations of the Task Force".
"Based on this a new pharmaceutical policy is likely to be announced shortly," he said.
Paswan said amongst the recommendations of the task force was price controls on drugs imposed based on 'essentiality' of the drug and not on the turnover and it should be applied only to formulations and not on the bulk drugs.
Promotion of generic drugs, revival of public sector enterprises in manufacture of drugs, providing fiscal incentives in R&D activities in drugs and providing financial support for implementation of Schedule M of Drugs and Cosmetic Act, 1940 were other major recommendations, he added.
He said the task force also recommended reduction of excise duty of drug to 8 per cent from 16 per cent and enhance exemption limit of SSI units from Rs 1 crore (Rs 10 million) to Rs 5 crore (Rs 50 million).
In another reply, Paswan denied price escalation of drugs due to implementation of patent law. "The National Pharmaceutical Pricing Authority has no specific information regarding increase in prices of medicines pursuant to implementation of the patent law," he said.
Stating that National Pharmaceutical Pricing Authority monitors the price movement of more than 30,000 medicines every month, Paswan said, "As per ORG-IMS report of July, prices of about 96 per cent medicines have either remained constant or slightly reduced. The prices of only about 3 per cent have increased, generally within a range of 5-10 per cent."
To another question on if the government had taken a decision to review the norms followed by NPPA in deciding the cost that companies can incur under various heads in taking a product to the market, he said, "The exercise to review them is under progress."
The minister said the study to revise norm regarding conversion charges, packing charges and process loss was being carried out by the cost account branch of the finance ministry at the instance of NPPA, whereas the study relating to packing material cost was being carried out by the NPPA itself.
Replying to another query on implementation of VAT on life saving drugs, Paswan said currently 4 per cent tax was charged and VAT being a state subject it was for the empowered committee or the states concerned to decide the rates of tax on commodities, including life saving drugs.
On possiblity of closure of drug manufacturing units in states like Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Tamil Nadu and Gujarat, he said the government had received representations regarding problems by the units in the states.
Paswan said the ministry had reduced excise duty on all pharmaceutical products from 16 per cent to 8 per cent and enhanced exemption limit of small scale units to Rs 5 crore from the current Rs 1 crore as a measure to solve problems faced by the units in the states mentioned.