Pradhan Mantri Bhartiya Janaushadhi Pariyojna

‘Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ is a campaign launched by the Department of Pharmaceuticals, Govt. Of India, to provide quality medicines at affordable prices to the masses through special kendra’s known as Pradhan Mantri Bhartiya Jan Aushadhi Kendra.

Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK) 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.

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.

Objectives of the scheme: Making quality medicines available at affordable prices for all, particularly the poor and disadvantaged, through exclusive outlets “Jan Aushadhi Medical Store”, so as to reduce out of pocket expenses in healthcare.

Vision: Vision is to bring down the healthcare budget of every citizen of India through providing Quality generic Medicines at Affordable Prices.

1. Create awareness among public regarding generic medicines.
2. Create demand for generic medicines through medical practioners.
3. Create awareness through education and awareness program that high price need not be synonymous with high quality.
4. Provide all the commonly used generic medicines covering all the therapeutic groups.
5. Provide all the related health care products too under the scheme.

BPPI (Bureau of Pharma PSUs of India), under the administrative control of the Department of Pharmaceuticals, Ministry of Chemicals& Fertilizers, Government of India is the implementation agency for the PMJAY.

BPPI has been established under the Department of Pharmaceuticals, Government of India, with the support of all the Pharma CPSUs for coordinating procurement, supply and marketing of generic drugs through the Jan Aushadhi stores.

In April 2010, BPPI got registered as an independent society under the Societies Registration Act, 1860 as a separate legal entity. BPPI follows the provisions of GFR 2005 and CVC guidelines as amended from time to time and also instructions from the Department of Pharmaceuticals.

Key features of Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):

1. State Governments or any organization / reputed NGOs / Trusts / Private hospitals / Charitable institutions / Doctors / Unemployed pharmacist/ individual entrepreneurs are eligible to apply for new Jan Aushadhi stores.
2. The applicants shall have to employ one B Pharma / D Pharma degree holder as Pharmacist in their proposed store.
3. Applications shall be submitted to BPPI either online or offline.
4. Jan Aushadhi stores can be located within Government hospital premises as well as Private hospital premises or anywhere outside.
5. In addition to medicines and surgical items supplied by BPPI, Jan Aushadhi stores will be allowed to sell allied medical products commonly sold in chemist shops so as to improve the viability of running the Jan Aushadhi store.
6. BPPI shall source the medicines both from Pharma PSUs as well as from Private companies. However, PSUs would have the first right to supply the products that they manufacture in their plants. BPPI shall ensure that private manufactures are only reputed organisations by incorporating strict terms and conditions in the tender specifications.
7. Tendering for medicines shall be only through e tendering. All the tendering process shall be completely transparent giving equal opportunity for all the participants.
8. BPPI shall establish a Central Ware House, C&F agents at different locations and Distributors in all the States/UTs.
9. On receipt of goods at their central ware house, BPPI shall draw samples and sent them to NABL accredited laboratories for inspection. Only after receipt of quality certification from the inspecting laboratories, goods shall be dispatched to C&F agents and Distributors.
10. BPPI shall plan and undertake suitable media activities so as to spread the message of generic medicines and to achieve the objectives of the PMBJP.
11. Financial support to applicants: An amount of Rs.2.5 lakhs shall be extended to NGOs/agencies/individuals establishing Jan Aushadhi stores in Government hospital premises where space is provided free of cost by Government to operating agency: Rs. 1 lakh reimbursement of furniture and fixtures Rs. 1 lakh by way of free medicines in the beginning Rs. 0.50 lakh as reimbursement for computer and peripherals, internet, etc. For the Jan Aushadhi stores established anywhere else by private entrepreneurs / institutions / NGOs / Trusts / Charitable organizations which are linked with BPPI headquarters through internet shall be extended an incentive up to Rs. 2.5 lakhs. This will be given @ 15% of monthly sales subject to a ceiling of Rs. 10,000/- per month up to a limit of Rs. 2.5 lakhs. In north easternStates, i.e. naxal affected areas and tribal areas, the rate of incentive will be 15% and subject to monthly ceiling of Rs. 15,000 and total limit of Rs. 2.5 lakhs.
12. 20% trade margin shall be included in MRPfor retailers and 10% for distributors.
13. Jan Aushadhi stores and Distributors will be allowed 2% of total sales or actual loss, whichever is lower, as compensation against expiry of medicines. Expired goods need not be returned to BPPI. Stocks expiring at the C&F level will entirely be the loss of BPPI.
14. Credit facility will be given to all Jan Aushadhi stores for 30 days against postdated cheques. Distributors will also get credit of 60 days againstpostdated cheques. C&F agencies will have to deposit a security amount depending upon the business.
15. BPPI shall arrange suitable training program for the entrepreneurs who do not have any experience in running medicine shops.
16. Institutions / Charitable organisations / NGOs who are procuring medicines for own consumption / free distribution to poor and needy will be allowed to procure medicines from BPPI CFA agents.
17. Jan Aushadhi medicines will be sold through “Mobile Jan Aushadhi Vans” after all requisite approvals are obtained.

Strategy and Approach:

All State Governments shall be directed to open Jan Aushadhi stores in Government run hospitals and medical colleges. Memorandum of Understanding shall be entered into with reputed organisations / NGOs / Trusts / Charitable institutions for opening large number of Jan Aushadhi stores across the country.

Applications shall be invited through press media from Private hospitals and other institutions / registered medical practitioners / individual entrepreneurs for opening Jan Aushadhi stores.

All PSUs having township shall be approached to open Jan Aushadhi stores in their township.

To further ensure viability of running Jan Aushadhi stores, possibilities of establishing Jan Aushadhi stores in Kisan Centres / Common Service Centres / other different retail outlets shall be encouraged.

The success of this initiative is dependent on other agencies too, such as Ministry of Health & Family Welfare, State Governments, active co-operation of members of Parliament, members of different Legislative assemblies, IMA, Hospitals run by Private groups and Charitable institutions, NGOs, Practicing Doctors etc. States which are having their own schemes like free distribution of medicines are to be coupled with Jan Aushadhi scheme.

Non-prescription of Generic Medicines by the doctors is another factor. BPPI is continuing their efforts to persuade Doctors to prescribe only generic medicines. For this BPPI is working in close association with other organizations and Govt. departments. Seminars / Workshops inviting Doctors, Scientists, Government officials and other stakeholders will be also organized.

The endeavor of BPPI is to make available at Jan Aushadhi Stores all the commonly used generic drugs covering all the therapeutic groups. In the coming years, Jan Aushadhi scheme shall provide the complete spectrum of Health care products and services, starting from making available all the generic drugs covering all the therapeutic groups.Product basket to contain 1000 items by March 2017 and to include stents and replacements.

Jan Aushadhi

Over the years India, has developed a strong capability in producing quality branded and generic medicines in most of the therapeutic categories, evolving from an mere Rs 1,500 crores industry in 1980 to a more than Rs 1,19,000 crores industry in 2012. However, although these medicines are reasonably priced, as compared to the prices of their equivalent medicines in most other countries, yet a large population of poor people in the country, find it difficult to afford the more expensive branded category of medicines.

Accordingly, ‘ensuring availability of quality medicines at affordable prices to all’, has been a key objective of the Government. some of the important steps taken to enable this are:

A. Price control of Scheduled Drugs through the National Pharmaceutical pricing authority (NPPA): Under the Drug Price Control Order, 1995, NPPA): Under the Drug Price Control Order, 1995, NPPA has been given the mandate to control and fix the maximum retail prices of a number of scheduled/listed bulk drugs and their formulations, in accordance with well defined criteria and methods of accounting, relating to costs of production and marketing Notably therefore, the prices of these medicines have remained quite stable and affordable.

B. Price regulation of Non-Scheduled Drugs: Apart from the scheduled medicines under DPCO, 1995, the NPPA monitors the prices of other medicines not listed in the DPCO schedule, such that they do not have a price variation of more than 10% per annum. This has further helped in keeping the prices of most of the non-scheduled medicines stable and affordable.

C. Uniform VAT of 4% on medicines: Government has fixed a uniform and low rate of 4% VAT on medicines in the country. This policy has been adopted, in almost all the States in the country, and has reduced the incidence of sales tax on medicines and thereby assisted in keeping their prices low.

D. Reduction in Excise duty from 16% to 4% Further and in addition to above low, VAT rates, the [present government had, as part of the Budget for the year 2008-09 reduced the excise duty on medicines from 16% to 8%. This has been further reduced to 4 percent as from 8th December, 2008. This has again, played a crucial role in keeping the prices of most of the medicines at reasonable levels. Not satisfied with the above regulatory and financial steps for ensuring greater availability of medicines at affordable prices to all, specially the poorer masses, the government has decided to launch a country wide Jan Aushadhi Campaign.