NEW DELHI: The government proposes to revamp the country’s drug pricing regulator, allowing it to set prices of only essential medicines.The latest draft proposals suggest amendments to the drug pricing policy and inducting advisory body of experts in a move to strengthen the regulatory body, but at the same time may take away its absolute power to fix drug prices in public interest.Last year, Niti Aayog , the health ministry and the Department of Pharmaceuticals ( DoP ) were engaged in discussions to dissolve NPPA in its current form and reallocate it within the department. This proposal did not materialise.NPPA presently functions as an autonomous body that regulates prices of medicines under the National List of Essential Medicines and also monitors the prices of those that are not on the list. DoP’s latest draft pharma policy suggested that NPPA can cap prices of only those drugs included in the NLEM. The NPPA should lay down and enforce price ceilings of “selected medicines” and ensure that “adequate quantities” of the drugs are available.“National List of Essential Medicines will remain the basis of the medicines to be brought under price regulation… the Department of Pharmaceuticals will prepare the list of medicines for price regulation and transmit them to the NPPA for fixing the price ceilings,” according to the latest draft of the pharmaceuticals policy, a copy of which ET has seen.Appeals against NPPA’s decisions will lie with the government, while appeals against the government’s decisions will be decided by the judiciary.“On pricing, it seems to propose broad changes to the functions and processes of NPPA. The draft appears to impose greater oversight on NPPA such as review of all its decisions, which could mean greater say over NPPA’s ability to cap prices in public interest also,” said Malini Aisola, a member of the All India Drug Action Network (AIDAN), a civil society group. Some groups said the proposals would dilute the powers of NPPA.The draft may encourage profiteering if implemented as it proposes to weaken the powers of NPPA, Swadeshi Jagran Manch national co-convenor Ashwani Mahajan told ET. The Manch is an affiliate of the Rashtriya Swayamsevak Sangh. It said the proposed provisions and amendments shift several important decisions to the Central government.The draft policy, circulated for stakeholder views, suggests amending the drug pricing policy and inducting an advisory body of experts to strengthen the regulatory body. It seeks to improve access to affordable medicines, reduce dependence on other countries including China for raw material, improve manufacturing quality and create an ecosystem to support innovative new drugs.One recommendation is to reorient the Drug (Prices Control) Order, 2013, which NPPA currently follows for its pricing decisions, to shift focus from price control to monitoring of drug prices, their availability and accessibility.The Department of Pharmaceuticals will be able to direct usage of emergency powers under Para 19 of the DPCO to regulate prices of patented medicines that are not under compulsory licensing.NPPA used powers under Para 19 on Wednesday to slash prices of knee implants by up to 69%, citing “extraordinary circumstances” as the devices were not on the list of essential medicines and hadn’t been notified for price control.“Language of DPCO should be made more definitive. There should not be much scope for different interpretations,” according to the draft.Apart from civil society, industry and government representatives, the draft proposes that NPPA’s advisory body for pricing should consist of doctors, pharmacists and other experts. While NPPA won’t have to accept the recommendations of this body, it will be required to assign reasons in writing for modifying or rejecting them.Civil society groups such as AIDAN said they are studying the draft. “While on the one hand the draft has some positive initiatives to improve access to affordable medicines, in some instances it seems to push towards deregulation,” said Aisola.The Swadeshi Jagran Manch wrote to Minister of Chemicals and Fertilizers Ananth Kumar on Wednesday, alleging that the Department of Pharmaceuticals is “working against” the stated objectives of the Prime Minister and the chemicals and fertilizers ministry.