Pradhan Mantri Jan Aushadhi Yojana

What is Pradhan Mantri Jan Aushadhi Yojana?

A large chunk of our countries population lies below the poverty line. They find it hard to be able to afford expensive medicines. With the objective to ensure medicines for all the government came up with Pradhan Mantri Jan Aushadhi Yojana. The medicines are planned to be made available through Jan Aushadhi Stores. Under the Jan Aushadhi Scheme, the State Governments are required to provide space in Government Hospital premises or any other suitable locations for the running of the Jan Aushadhi Stores (JAS).  Bureau of Pharma PSUs of India (BPPI) is to provide one-time assistance of Rs.2.50 lakh as furnishing and establishment costs, start-up the cost for setting up a Jan Aushadhi Outlet.  Any NGO/Charitable Society/Institution/Self Help Group with experience of minimum 3 years of successful operation in welfare activities can also open the Jan Aushadhi store outside the hospital premises.  A margin of 16% on the sale price is built in the MRP of each drug.  In addition, the JAS are eligible for incentive linked to the sale of medicines @ 10% of monthly sales amount, subject to a ceiling of Rs.10, 000/- pm for a period of first 12 months.  In the case of Stores opened in the North Eastern States and other difficult areas i.e., Naxal affected areas/Tribal areas etc., the rate of incentive is15% of monthly sale amount, subject to a ceiling of Rs.15,000/- per month.

Presently 182 Jan Aushadhi Stores are running in 16 states of the country. , since the availability position has substantially improved, focused attention is being given on opening of new Jan Aushadhi stores.  However, all out efforts are made to open at least 200 more Jan Aushadhi Stores during this financial year 2015-16.  Jan Aushadhi Stores are opened on the locations as requested by the entity intending to open.  The steps are also taken to open Jan Aushadhi stores in all AIIMS across the country, prominent Hospitals, and Medical Colleges under the Ministry of Health & Family Welfare.


Requirements for applying for opening new Jan Aushadhi Store

  • Application on prescribed format duly filled along with a demand draft for Rs. 2000/-
  • Own space or hired space (Minimum 120 sq feet) duly supported by proper lease agreement or space allotment letter.
  • The applicant will arrange the space for running the Jan Aushadhi Generic Drug Store & BPPI will have no role in arranging space.
  • Proof of securing a pharmacist with name, Registration with the State Council etc. (or it can be submitted at the time of final approval of Jan Aushadhi Store)

Address for submission of application

Application should be sent in the relevant formats along with the required documents which clearly mention APPLICATION FOR NEW JAN AUSHADHI STORE

DIRECTOR Operations

Bureau of Pharma Public Sector Undertakings of India (BPPI),

IDPL Corporate Office, IDPL Complex,

Old Delhi-Gurgaon Road, Dundahera,

Gurgaon – 122016 (Haryana)

Remedial measures taken for implementation of the scheme are summarized as under:-

  • Increasing the number of products from 361 to 504 medicines and 161 surgical and consumable items.
  • Appointing of Distributors and C&F agents in different States to improve the supply chain mechanism.
  • Increasing the number of functional stores.
  • Strengthening the Operating Agency i.e., BPPI through augmenting of manpower.
  • Relaxation in the eligibility criteria of Operating Agency for Jan Aushadhi Store.

BPPI has initiated various steps to increase the basket of products and services with a list of 504 medicines and 161 consumables. Rate contract for 314 medicines has already been finalized and the tender for remaining 190 medicines has also been published now. 131 medicines have already been identified for PSUs and a list of 173 medicines has already been forwarded to Pharma PSUs for exploring the possibility of undertaking the manufacturing of the same.

The Public Health Foundation of India studied the scheme accurately and suggested some changes for its betterment. PHFI in their report pointed out the following factors which were mainly responsible for its slow improvement.

  • Over dependence on support from State Government.
  • Poor Supply Chain management.
  • Non-prescription of Generic Medicines by the doctors.
  • State Governments launching free supply of drugs.
  • Lack of awareness among the public


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