21st September, 2018

Jan Aushadhi Scheme

Overview

  • In India, branded medicines are sold at significantly higher prices than their un-branded (generic) equivalents. With widespread poverty in India, the Government realized the need to make these quality medicines available at reasonable prices to all, especially the poor and disadvantaged.
  • The Jan Aushadhi Scheme was launched in 2008 with an aim to make available quality generic medicines at affordable process to all citizens.
  • For this purpose, special sales outlets known as Jan Aushadhi stores will be opened in each district of all the States/UTs. There are currently more than 1609 Jan Aushadhi store outlets spread over 31 States/UTs.
  • These stores will provide generic medicines at lower prices which are identical in quality and efficacy as the branded expensive medicines. The scheme is hence also a campaign to make people aware that brand value and high price need not be synonymous with quality and efficacy of medicines and to encourage medical practitioners to create demand for generic medicines.
  • As on 31st January 2017, the product basket had 1000 medicines and 154 surgical and consumables, which cover medicines from most of the common therapeutic groups.
  • Bureau of Pharma PSUs of India (BPPI), under the administrative control of Department of Pharmaceuticals (Ministry of Chemicals & Fertilizers), is the implementing agency of the scheme.
  • Under the scheme, the state governments are required to provide space in Government hospital premise or any other suitable locations for running the Jan Aushadhi stores.
  • These stores can be opened outside the hospital premises by any NGO/Charitable Society/Institution/SHG/Individual Pharmacists.

Eligibility

Individuals like entrepreneurs, unemployed pharmacists, doctors and medical practitioners and organizations such as NGOs, charitable institutions, societies, trusts, SHGs, Private Hospitals are eligible to open new Jan Aushadhi stores. The store outlets can also be opened by state governments or government nominated agencies.

  • Individual applicants other than doctors/medical practitioners need to compulsorily have B. Pharma and D. Pharma Degrees.
  • Organizations applying for opening stores need to have at least 3 years of working experience in welfare activities and they should employ B. Pharma and D. Pharma degree holders in the stores.
  • Own or hired space (Minimum 120 sq feet) with lease agreement or space allotment letter.
  • Proof of securing a pharmacist with name, registration with the State council
  • Organization need to prove financial capacity to run the store with valid document/affidavit for having good financial and investment conditions.

To view the detailed guidelines for opening of Jan Aushadhi stores for different categories i.e. individuals/organizations/government nominated agencies/mobile stores, you can visit: Guidelines for Opening of Jan Aushadhi Store for different category

Benefits

For Indian citizens buying the medicines:

  • The scheme aims to bring down the healthcare budget of every Indian citizen by providing quality generic medicines at affordable prices.

For agencies operating the store:

  • A margin of 20 % on the sale price is built in the MRP (excluding taxes) of each drug for operating agencies which will be their earning. The store operators are also allowed to sell allied medical products, commonly sold in chemist shops.
  • Jan Aushadhi stores will be allowed 2 % of total sales or actual loss, whichever is lower, as compensation against expiry or breakage of medicines. These will be borne by BPPI.
  • Credit facility will be given to all Jan Aushadhi stores for 30 days against post-dated cheques.
  • The government-nominated agencies are provided minimum space free of cost for running the Jan Aushadhi store in the hospital premises.
  • BBPI additionally provides these agencies a one-time assistance of Rs. 2.5 lakhs which includes Rs. 1 lakh reimbursement of furniture and fixtures, Rs. 1 lakh by way of free medicines initially and Rs. 50,000 as reimbursement for computer, internet, etc.
  • For the store outlets established anywhere else by private entrepreneurs, pharmacists, NGOs or charitable organizations that are linked with BPPI headquarters (through internet using BPPI software), they will receive incentive linked to sale of medicine up to Rs. 2.5 lakhs. This will be given at the rate of 15 % of monthly sales amount, subject to a ceiling of Rs. 10,000 per month up to total limit of Rs. 2.5 lakh.
  • In case of stores opened in North-eastern states and other difficult areas such as Tribal/Naxal affected areas, incentive is at the rate of 15 % and subject to a ceiling of Rs. 15,000 pm up to total limit of Rs. 2.5 lakhs.
  • Applicants from weaker sections such as SC/ST/differently-abled are provided medicines worth Rs. 50,000 in advance within the incentive of Rs. 2.5 lakh which will be provided at the rate of 15 % of monthly sales subject to a ceiling of Rs. 10,000 per month up to a total limit of Rs. 2.5 lakhs.

Documents Required

The list of documents required to be attached with application are:

For Individuals: Aadhaar Card, Pan Card, Pharmacist Registration Certificate;

For Institutions/NGOs/Charitable Institute/Hospitals: Aadhaar Card, Pan Card, Certificate for Incorporation, Registration certificate of NGO / Institution, Pharmacist Registration Certificate;

For State government & Government nominated agencies: Aadhaar Card, Pan Card, Details of Department who has allocated the store space along with supporting documents / Sanction order, Pharmacist Registration Certificate.

For applicants from SC/ST/differently abled category, proof of the SC, ST and differently-abled certificates from respective authorities is required.

How to Apply

  • BPPI shall invite applications through press media from applicants.
  • Applicants need to fill the application form and send them to the BPPI address provided at the Contact Information section along with supporting documents in a closed envelope with cover clearly super scribed as “Application for the New PMBJK”. Applications can also be sent online.
  • These forms (offline/online) for all categories of applicants are available here: Guidelines
  • Before commencing operations of Jan Aushadhi store, applicants will have to enter into an agreement with BPPI.

How citizens can buy these low-cost medicines

Jan Aushadhi stores are opened in most of the states in the premise of hospitals, NGOs, charitable societies, etc. The Jan Aushadhi medicines are also sold by the state government through agencies.

Relevant Link

You can find the detailed information at: Official Website

Contact Information

Department of Pharmaceuticals,
Ministry of Chemicals & Fertilizers,
Government of India,
Shastri Bhawan, New Delhi-110001.

Bureau of Pharma Public Sector Undertakings of India (BPPI)
IDPL Corporate office, IDPL Complex,
Old Delhi Gurgaon Road, Dundahera,
Gurgaon-122016 (Haryana).
Tel: 0124-4223074/4556750, Fax:0124-2340370

Name

Telephone No.

Email ID

Ms. Geetanjali Tyagi, Executive (Customer Care) 18001808080 (Toll Free) cce.bppi@gmail.com
Mr. Rakesh Vashisht, Executive 0124-4556750 (Tel) shvb.bppi@gmail.com

 

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