Paswan pill gives Govt a headache

New Delhi: The Union Chemicals Ministry headed by Ram Vilas Paswan is finalising a new drug policy that looks at putting over 350 drugs under price control. But Paswan's pet project is drawing flak from India's pharmaceuticals industry. His big plans for the common man that include making essential medicines cheaper have not gone down well with the Government as well. "We want these rights for the common man and so I am taking this policy to the Cabinet," Paswan announced. The proposed drug policy makes the following points: Putting 354 essential drugs under price control This implies that the maximum margin of profit will be fixed. For now the ministry is keeping that at 150 per cent which means if it costs Rs 100 to produce a drug, companies cannot sell it for more that 250 For drugs developed through indigenous means, the margin of profit can up to 200 per cent, so a Rs-100 drug developed indigenously could be sold at a price of up to Rs 300. But CNN-IBN has learnt that the Finance Ministry and the Department of Industry and the Planning Commission aren't in favour of price control. These proposals are also making India Inc see red. The Industry minister says pharma companies concerns will be looked at "This control is not needed. We’ll take the concerns into account," Industries Minister Kamal Nath said. But Paswan, clearly wanting to be the champion of the common manm says price control is needed as competition doesn’t keep prices in check. "Cetrizine is produced at Re 1 and is sold at Rs 37. So we need some price control,” Paswan said. So when the UPA Government – that prides itself in being called the common man’s government - finalises the drug policy, it knows it will have to keep that image intact. But pharma is also a sunrise sector of Indian industry and the Government has also to look after the interests of the pharma firms.