New Delhi, April 6: The Hathi Committee on drugs and pharmaceuticals has recommended a selective price control on drug formulations under a new formula instead of the present price control system which covers each and every formulation.

In its final report presented to the Petroleum and Chemicals Minister, Mr. K.D. Malaviya to-day, the 15-member committee, headed by Mr. Jaisukhlal Hathi, MP, has recommended lifting of price control on units having an annual turnover of less than Rs. one crore. At present units with an annual turnover of upto Rs. 50 lakhs are exempted from price regulation.

It has further suggested that formulations based on 13 essential drugs as identified by the committee for abolition of brand names should also be exempted from price control. In the case of bulk drugs, the committee has favoured exemption from price control on items in which there are no imports and which in terms of total sales and basic drugs do not exceed Rs. 25 lakhs annually.

In respect of other bulk drugs, the committee has suggested that the system of price regulation based on detailed cost examination should continue, subject to the price being so fixed that an efficient manufacturer is able to get a return on his capital which is a little higher than that available on formulations for the industry as a whole.