Another 11-member panel, headed by secretary (C&PC), would identify required areas of support to pharmaceutical firms to undertake local research and development. The intent to set up both committees was announced by finance minister Yashwant Sinha during his budget address recently.

The 10-member team includes chairman of the National Pharmaceutical Pricing Authority, Kosalram, the Drugs Controller India P Dasgupta, the joint secretary (pharmaceutical industry) SK Sood. Other members in this team include the health secretary, secretary of the department of industrial policy & planning, the commerce secretary, secretary of the department of Economic affairs, secretary of the department of biotechnology) and a planning commission representative.

Industry experts saythat this high-level team, among other issues, may look into the need to empower the drug policy to cover new molecules that are expected to hit the Indian market, post-adoption of product patents. "Under the existing framework, there is no way that the Government can exercise its powers and bring a new molecule under price control given the stipulated criteria. So this is probably one area that would be looked into on a priority basis, given the country's commitment on the intellectual property rights front," an expert said.

Besides, this 10-member committee will also work towards reducing the rigours of price control. Industry has all along maintained that prices of pharmaceutical products should be allowed to be determined on the basis of competitive market forces rather than externally enforced restrictions.

Experts claim that once product patents are introduced in the country, the share of patent-protected drugs is likely to go up to 20-25 per cent (from around 10 per cent now) over the next 10years. "There is no doubt that these drugs will be priced at a premium to recoup the investments made in research. However, the abundant availability of off-patent drugs will ensure that a majority of the country's medical needs can be met at affordable prices," said an official of a Delhi-based pharmaceutical firm.

The committee constituted to suggest measures to support domestic R&D efforts includes the secretary (department of scientific and industrial research), Secretary (department of science and technology), secretary (department of biotechnology), secretary (department of revenue) and directors of the Central Drug Reserach Institute of India (CDRI), Lucknow and the Indian Institute of Chemical Technology (IICT), Hyderabad.