World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: Disinvestments in a particular year depend on culmination of a set of procedures mentioned below:

1. 
   Authorization procedure that includes, the Board of Directors of the CPSE, the administrative ministry including other ministries concerned and finally the Government.
   
2. 
   The CPSE specific compliance procedure in preparation for disinvestment.
   
3. 
   Market related procedure that includes professional positive input and advice about the markets.
   

Based on the above factors partial disinvestments approved for certain companies in 2011, will take place.

Foreign investors should be able to participate in these disinvestments under the category of qualified institutional buyers. Marketing road shows are organized to facilitate their participation in the IPOs/FPOs.

US 79:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures Directly Affecting Exports: (4) Measures Affecting Production and Trade: (iii) Competition policy: Page 100, Paragraph 203:

The Secretariat's Report describes provisions of the Competition Act 2002, particularly as they pertain to abuse of dominant position. According to the report, the Act prohibits enterprises from imposing unfair or discriminatory conditions when purchasing or selling goods or services, or when pricing goods or services? Do these provisions of the Competition Act apply equally to India's central public sector enterprises? If not, please describe the measures in place to prevent abuse of market position by CPSEs.

Reply: The Competition Act applies fully to the CPSEs and the Competition Commission of India (CCI) has the authority to take decisions regarding any anti competitive practice entertained by CPSEs, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space, as per the definition of "enterprise" under section 2(h) of the Competition Act, 2002.

US 80:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures Directly Affecting Exports: (4) Measures Affecting Production and Trade: (iv) Price controls: Page 102, paragraphs 217 218:

India has price caps on certain branded drugs. The Department of Pharmaceuticals (DoP) permits importers to recover landed costs, plus any additional cost getting drugs to market up to 50 per cent if there are no domestic manufacturers, in which case there is a 35 per cent rate of return. We have heard reports that the National Pharmaceutical Pricing Authority (NPPA) is deviating from this rule by offering a rate of return below the stated policy, which appears effectively to price foreign companies out of the market. Is this deviation by NPPA permitted under Indian law? If so, what is the legal basis for this deviation and what is the rationale for NPPA's refusal to implement DoP's stated policy?

Reply: National Pharmaceutical Pricing Authority (NPPA), an independent body of experts set up by the Government to fix/revise the prices of scheduled drugs as per the provisions of Drugs (Prices Control) Order, 1995 (DPCO, 1995).

As per the provisions of DPCO, 1995, for scheduled formulations drugs imported in finished form, landed cost shall form the basis for fixing its price alongwith such margin to cover selling and distribution expenses including interest and importer's profit, which shall not exceed 50% of the landed cost.

Thus the margins as above can also be less than 50%. Decisions of NPPA are judicial orders for which there is a judicial process for review. Companies aggrieved against NPPA decision can have recourse to review and appeal thereafter under due process of law.

US 81:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures Directly Affecting Exports: (4) Measures Affecting Production and Trade: (iv) Price controls: Page 105, paragraphs 217 218:

What new price control policies is India considering, and does India plan to have a process that is open for public comment?

Reply: The Pharmaceutical Policy as amended from time to time envisages making available quality medicines at reasonable prices to the masses. This policy is prepared after consulting with all the stakeholders.

US 82:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures Directly Affecting Exports: (4) Measures Affecting Production and Trade: (v) Government procurement: Page 106, paragraph 219:

India became an observer to the WTO Agreement on Government Procurement in February 2010. Does India have plans to commence accession to the GPA? If so, please indicate when India intends to commence accession?