The National Pharmaceutical Pricing Authority was set up as an attached office of the Department of Chemicals and Petrochemicals on 29th August 1997. It has been entrusted with the following functions/tasks:

1. To implement and enforce the provisions of the Drugs Price Control Order (DPCO) in accordance with the powers delegated to it.
2. To fix / revise prices of bulk drugs and related formulations. The N P P A  is empowered to take final decisions, but subject to review by the Government, as and when considered necessary.
3. To update the list under price control by inclusion and exclusion of drugs on the basis of the established criteria/guidelines.
4. To deal with all legal matters arising out of the decisions of the Authority.
5. To monitor the prices of decontrolled drugs and formulations.
6. To monitor the availability of drugs, identify shortages, if any, and to take remedial steps.
7. To collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc. for bulk drugs and formulations.
8. To undertake and/or sponsor relevant studies in respect of pricing of drugs/pharmaceuticals.
9. To recruit/appoint the officers and other staff members of the Authority, as per rules and procedures laid down by the Government.
10. To render advice to the Central Government on changes/revisions in the drug policy.
11. To render assistance to the Central Government in the parliamentary matters relating to the drug pricing.

NPPA is headed by the Chairman, Shri Ashok Kumar, and assisted by the Member Secretary, Shri Arun Jha.