The Drug Technical Advisory Board's recommendation comes over a month after the Ministry imposed a ban on the drug, suspending the manufacture, sale and distribution of Pioglitazone and all formulations containing it.
The relook on the ban came after the government went on the backfoot following hue and cry from pharma industry and medical fraternity against the "hasty" decision of the government which had bypassed the Board. The drug was being used by over lakhs of people in India and was much cheaper than its alternatives.
The Board has now recommended to the government to revoke the ban as a large number of people across the country use the drug and other alternative drugs are much more expensive, they said.
It also discussed that there was no scientific data to prove the link of the drug to urinary bladder cancer and asked the drug regulator to carry out such studies, the sources said.