The Pharmaceutical industry has evolved from merely Rs.1500 crores in 1980 to more than Rs.1,19,000 crores
by 2012. Medicines in almost every therapeutic category are sold primarily as branded drugs, at
disproportionately very high prices.
80% of out-patient care and 60% of all in-hospital care occurs at private facilities in India and majority of
households are exposed to a private-sector market to buy drugs (Public Health Foundation of India, 2012).
According to NSO estimates, upto 79% of health care expenses in rural areas are due to the cost of medicines.
Thus, access to low-priced generic drugs is very critical in ensuring health care at affordable prices.
Ensuring availability of quality medicines at affordable prices to all has been the key objective of the
Department of Pharmaceuticals, Government of India. Hence, the Department has decided to launch a
nation-wide campaign viz. 'Jan Aushadhi' as a direct market intervention strategy.
Jan Aushadhi Campaign-key objectives
- Make low priced quality medicines available for all through dedicated stores.
- Reduce unit cost of treatment per person, more particularly suffering from chronic ailments.
- Create awareness through education and publicity that high price of drug does not necessarily imply high
efficacy and potency.
- Create a demand for low-priced generic medicines.
- Encourage doctors, more specifically in government hospitals, to prescribe generic medicines
Implementing Agency: Bureau of Pharma Public
sector undertakings of India (BPPI)
- State Government may nominate Operating Agencies like
NGOs, Charitable Organizations and public health societies like Red Cross Society, Rogi Kalyan Samitis, typically
constituted for the purpose for running Jan Aushadhi Stores
(JAS). State Government may also provide built up space for A -
JAS in district hospitals. Such operating agencies shall be
provided initial financial assistance of Rs. 2.50 lakhs per stOre.
- Other NGOs/societies/trusts/institutions/unemployed
pharmacists/others may also run stores, but financial assistance would be linked to sales subject to a
ceiling of Rs. 10,000/- per month for a period of one year. For difficult areas such as naxal affected areas
and North Eastern States, the rate of assistance would be Rs.15,000/- per month.
- Operational expenditure to be met by 0peratingAgency from trade margins admissible for the medicines
- 361 drugs covering almost all therapeutic categories would be made available.
- No stock out position shall be maintained through a comprehensive IT application for supply chain
management. The required hardware and software shall be provided by BPPI.
- Sourcing of medicines will be done through open public tender. Central Pharmaceuticals CPSUs would be
given preference in sourcing of drugs.
- Quality of medicines shall be ensured through a fool proof system of quality check from NABL accredited
laboratories. Every pack shall pass through a strict quality test before it is placed in supply chain.
- The Government doctors would be persuaded to prescribe generic drugs with proactive help from State
- Massive publicity campaign would be launched for promotion of low priced generic drugs.
Journey so far
- Bureau of Pharma PSUs of India (BPPI) was established in
December, 2008 under the Department of Pharmaceuticals,
Government of India, with the support of all the PharmaCPSUs viz. Indian
Drugs and Pharmaceuticals Limited (IDPL), Rajasthan Drugs and
Pharmaceuticals Limited (RDPL), Hindustan Antibiotics Limited (HAL),
Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Bengal
Chemicals and Pharmaceuticals Limited (BCPL). It was expected that
BPPI would particularly focus on;
- Coordinating marketing of the generic drugs through the Jan Aushadhi
- Sourcing of medicines from Pharma CPSUs and Private Sector.
- Proper running of Jan Aushadhi stores.
- Managing supply chain
- The Bureau has been registered as an independent society under the
Societies Registration Act. 1860 as a separate legal entitv in April. 2010.
So far, 308 Jan Aushadhi Stores have been
opened across 23 States of Chattisgarh (108),
Odisha (23), Maharashtra (23), Punjab (22), Kerala (15),
Uttar Pradesh (12), Jharkhan (12), Himachal Pradesh (12),
Gujrat (11), Jammu and Kashmir (11), Madhya Pradesh (10),
Delhi (10), Haryana(8), Uttrakhand(7), Tripura (7), Telangana (4),
Chandigarh (4), Andhra Pradesh (3), Rajasthan (2), Bihar (1),
Mizoram (1), Arunachal Pradesh (1), and Karnatka (1).
Role and Responsibility of Department of Pharmaceuticals
The role of the Department of Pharmaceuticals, being a parent department for implementing the Scheme, is to;
Role and Responsibility of
- Ensure governmental support and budgetary assistance for the Scheme
- Coordinate implementation of scheme with State Governments,
- Periodically review & evaluate the scheme and suggest suitable corrections to further improve the campaign.
The role of Ministry of Health & Family Welfare (MoH & FW)
is critical inencouraging doctors to prescribe generic 0 5
medicines. The role of State Government is also very
critical in making this scheme a success, particularly in
encouraging and facilitating NGOs/ Charitable bodies to
set up generic drug stores. The State Governments may
also ensure that Government doctors prescribe low priced
generic medicines available at stores.
New Business Plan
3000 Jan Aushadhi stores are proposed to be opened in the next three years. All the stores will be linked through
a robust IT-application with assured connectivity to monitor availability of drugs at stores. A comprehensive
media campaign with extensive use of social media would also be launched.
Steps for opening Jan Aushadhi store
The appiicants have to approach BPPI with a complete application providing the following particulars
- Own space or hired supported by proper agreement from owner
- Minimum required space i.e. 15'x20' or 10'x3O' conforming to standard as approved by the BPPI.
- Proof of securing a pharmacist, data entry operator.
- Financial capacity to run the store
Jan Aushadhi Scheme is Joint Initiative of
Department of Pharmaceuticals
Ministry of Chemicals & Fertilizers
Government of India
Bureau of Pharma PSUs of India (BPPI)
In Partnership with
Indian Drugs and Pharmaceuticals Limited (IDPL)
Hindustan Antibiotics Limited (HAL)
Bengal Chemicals and Pharmaceuticals Limited (BCPL)
Karnataka Antibiotics and Pharmaceuticals Limited (KAPL)
Rajasthan Drugs and Pharmaceuticals Limited (RDPL)
The State Governments & UT Administrations