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Jan Aushadhi Scheme

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The Jan Aushadhi Scheme (Public Medicine Scheme) is a direct market intervention scheme launched by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India, to make available quality generic medicines[1] at affordable prices to all citizens through a special outlet known as Jan Aushadhi Store (JAS) opened in each district of the States. Around 108 such outlets have been in operation as in September 2015. Jan Aushadhi stores have been set up to provide generic drugs, which are available at lesser prices but are equivalent in quality and efficacy as expensive branded drugs. Jan Aushadi is also a campaign to make people aware that brand value has no correlation with quality or efficacy of the formulations and to encourage doctors to prescribe more of such generic medicines.

Ministry of Chemicals and Fertilisers launched Jan Aushadhi in November, 2008, with a view to make available quality medicines at affordable prices to the economically weaker sections of the society. The first JAS was opened at Amritsar Civil Hospital on 25.11.2008. Bureau of Pharma PSUs of India (BPPI) a consortium of Central Pharma Public Sector Undertakings and Department of Pharmaceuticals of Government of India - was set up by the Department of Pharmaceuticals for implementation of the Jan Aushadhi Scheme in December 2008. It got registered as an independent society in April 2010.

JAS can be opened and operated by any NGO/Institution/Co-operative Society identified by State Governments on the free space provided in the premises of Government Hospital by the State Governments. Further, any NGO/Society/Trust/Institution/Self Help Group having experience of operation in welfare activities for 3 years and having space and financial capacity or any individual including un-employed pharmacist / medical practitioner having space and financial capacity can open a JAS store.

For those Jan Aushadhi Stores proposed within Government hospital premises, a one-time financial assistance to the extent of Rs.2.50 Lakh (Rs.1 Lakh for furnishing, Rs.50000/- for computer and peripherals, Refrigerator etc. and another Rs.1 Lakh worth medicines to commence operations) is granted. Besides, the Jan Aushadhi Stores run by private entrepreneurs/ pharmacists/Non-Governmental Organizations/charitable organizations that are linked with the Bureau of Pharma Public Sector Undertakings of India (BPPI), through internet will get an incentive upto Rs.1.50 lakh. This will be given @ 10% of monthly sales subject to a ceiling of Rs.10,000/- per month upto a limit of Rs.1.5 lakhs. In North-Eastern States, Naxal affected areas and tribal areas, the rate of incentive will be 15% and subject to a monthly ceiling of Rs.15,000/- and total limit of Rs.1.5 lakhs. The margin available for the Retailers is upto 20% and for Distributors upto 10%. Margin was increased from the original 16% so as to ensure a reasonable level of profitability for them. Though sourcing of medicines is done through open tender, central PSUs are given a preference.

The list of medicines along with their maximum retail price (MRPs) and the location of stores are available on the website of the BPPI i.e. janaushadhi.gov.in.

More details on JAS may be seen here.

Schemes similar to JAS are operated separately by certain state Governments also. For instance, Kerala Consumerfed started the “Neethi Medical Stores” (neethi here means justified) with the assistance of Government of Kerala from 1 November 1998, i.e., 10 years prior to JAS. Under this scheme medicines are made available to the consumers at a price 13% to 40% less of the MRP. The role of Consumerfed in the scheme mainly is to procure and distribute medicines on wholesale basis as per the requirement of the Neethi Medical stores.

A countrywide campaign, for ensuring availability of generic medicines at affordable prices for all, under the project title “Pradhan Mantri Jan Aushadhi Yojana (PMJAY)” was initiated by the Department of Pharmaceuticals in association with Central Pharma Public Sector Undertakings. It envisages key initiative of opening of dedicated outlets Pradhan Mantri Jan Aushadhi Kendras (PMJAK) where high quality generic medicines are sold at low prices. Bureau of Pharma PSUs of India (BPPI) is implementing the scheme. As on 20.09.2016, 437 Pradhan Mantri Jan Aushadhi Kendras spread over 26 States/UTs are operational across the country. The Government is committed to open 3000 PMJAK by March 2017 across India as per a press release dated 20 September 2016.


1.Generic medicines are unbranded medicines which are equally safe and having the same efficacy as that of branded medicines in terms of their therapeutic value. The prices of generic medicines are much cheaper than their branded equivalent.

References

Scheme Brochure


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