According to the new policy of the Ministry of Health and Welfare, government health facilities at all levels will be able to draw from the fund to prescribe a range of generic drugs free of charge National List of Essential Medicines (Neld) of 2011
Of China Files for the Fact | 9 July 2012
The central government of India has provided a $5.4 billion fund for a project that was quietly adopted last year but under-publicized and due to enter the operational phase by the end of 2012. The deal affects the pharmaceutical industries who hoped to make major profits in India. According to the new policy of the Ministry of Health and Welfare, government health facilities at all levels will be able to draw from the fund to prescribe a range of generic drugs free of charge National List of Essential Medicines (Neld) of 2011.
The official list contains various types of medicine, from medicines anti-AIDS to analgesics, but above all it does not include any branded medicines, which in India are sold at disproportionate prices for a country where 700 million people - according to official government data - live on 20 rupees (30 euro cents) a day. The expenditure will be covered for 75 percent by the central government; the remaining 25 percent will put i local governments, which was asked to draw up its own list of medicines deemed necessary, taking into account geographical and climatic conditions. Doctors will be able to prescribe off-the-list and brand-name medicines using up to 5 percent of government-allocated funds. Those who exceed the limit will incur severe disciplinary sanctions.
"The government's policy aims to promote a greater and more rational use of quality generic medicines," explained a
