PressInformationBureau

GovernmentofIndia
MinistryofChemicalsandFertilizers
21July201517:06IST

JanAushadhiSchemetomakeavailablequalitygenericmedicinesataffordablepricestoall

TheGovernmenthaslaunchedJanAushadhiSchemetomakeavailablequalitygenericmedicinesataffordable
pricestoall,especiallythepoor,throughoutthecountry,throughoutletsknownasJanAushadhiStores(JASs).Underthe
JanAushadhiScheme,theStateGovernmentsarerequiredtoprovidespaceinGovernmentHospitalpremisesoranyother
suitablelocationsfortherunningoftheJanAushadhiStores(JAS).BureauofPharmaPSUsofIndia(BPPI)istoprovide
onetime assistance of Rs.2.50 lakhs as furnishing and establishment costs, start up cost for setting up a Jan Aushadhi
Outlet. Any NGO/Charitable Society/Institution/Self Help Group with experience of minimum 3 years of successful
operationinwelfareactivities,canalsoopentheJanAushadhistoreoutsidethehospitalpremises.Amarginof16%onthe
salepriceisbuiltintheMRPofeachdrug.Inaddition,theJASareeligibleforincentivelinkedtosaleofmedicines@10%
ofmonthlysalesamount,subjecttoaceilingofRs.10,000/pmforaperiodoffirst12months.IncaseofStoresopenedin
North Eastern States and other difficult areas i.e., Naxal affected areas/Tribal areas etc., the rate of incentive is15% of
monthlysaleamount,subjecttoaceilingofRs.15,000/permonth.

Atpresent182JanAushadhiStoreshavebeenopenedacross16States/UTsoutofwhichonly111JanAushadhi
Storesareinoperationason13.07.2015.Now,sincetheavailabilitypositionhassubstantiallyimproved,focusedattention
is being given on opening of new Jan Aushadhi stores. However, all out efforts are made to open at least 200 more Jan
AushadhiStoresduringthisfinancialyear201516.JASareopenedonthelocationsasrequestedbytheentityintendingto
open.ThestepsarealsotakentoopenJanAushadhistoresinallAIIMS,prominentHospitals,MedicalCollegesunderthe
MinistryofHealth&FamilyWelfare.

ThePublicHealthFoundationofIndia(PHFI)wasaskedtostudytheSchemeandsuggestremedialmeasures.PHFI
intheirreportpointedoutthefollowingfactorswhichweremainlyresponsiblefortheschemenotbeingsuccessful:

(i)OverdependenceonsupportfromStateGovernment.
(ii)PoorSupplyChainmanagement.
(iii)NonprescriptionofGenericMedicinesbythedoctors.
(iv)StateGovernmentslaunchingfreesupplyofdrugs.
(v)Lackofawarenessamongthepublic

Remedialmeasurestakenforimplementationoftheschemearesummarizedasunder:

a)Increasingthenumberofproductsfrom361to504medicinesand161surgicalandconsumableitems
b)ImprovingthesupplychainmechanismthroughappointingDistributorsandC&FagentsindifferentStates.
c)Increasingthenumberoffunctionalstores.
d)StrengtheningtheOperatingAgencyi.e.,BPPIthroughaugmentingofmanpower.
e)RelaxationintheeligibilitycriteriaofOperatingAgencyforJAS.

IndianDrugs&PhamaceuticalsLtd.(IDPL)andHindustanAntibioticsLtd.,(HAL),thePharmaCPSEsarekey
partners with regard to providing medicines for the scheme. After revival of the two Pharma CPSEs, they will play an
importantrole.

BPPIhasinitiatedvariousstepstoincreasethebasketofproductsandserviceswithalistof504medicinesand161
consumables.Ratecontractfor314medicineshasalreadybeenfinalizedandthetenderforremaining190medicineshas
alsobeenpublished.131medicineshavealreadybeenidentifiedforPSUsandalistof173medicineshavealreadybeen
forwardedtoPharmaPSUsforexploringthepossibilityofundertakingthemanufacturingofthesame.

ThisinformationwasgivenbytheMinisterofStateforChemicals&FertilizersShriHansrajGangaramAhirinreply
toanUnstarredQuestionintheLokSabhatoday.

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YKB/DM