NEW DELHI, Jan 28: The Union cabinet on Wednesday night upheld the price cuts proposed by the department of pharmaceuticals in ranitidine and rifampicin and shot down the objections raised by the minister M Arunachalam to these cuts.The cabinet also appointed a one man committee under Y K Alag, minister of state for power, to investigate Arunachalam's objections to the denial of price exemption to Cipla's bulk drug Salbutamol Sulphate. He will also look into the department's objections to the ministerial nod for a temporary hike in foreign equity capital in Menaraini Raunaq Pharma Ltd from 51 per cent to 81 per cent. Alag has been told to submit his report within 10 days.
In an unprecedented development, the department of pharmaceuticals has invoked Rule 7 of the Transaction of Business Rules of the central government to place the four controversial proposals on the cabinet's agenda on Wednesday. The cabinet note prepared hurriedly on Wednesday evening says, "The Prime Minister has in terms of Rule 7,read with entry (n) under Second Schedule of the GOI (Transaction of Business) Rules 1961 directed that the department should bring up the matter before the cabinet for consideration".
The note goes on to say that "since the minister (chemicals and fertilisers) is away on tour to his constituency, this note could not be submitted for his approval". The government can now give effect to the notification bringing down the price of rifampicin by 10 per cent.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
