Jan Aushahdi Scheme: Highlights, Drawbacks and Modifications

Jan Aushahdi Scheme: Highlights, Drawbacks and Modifications

Question: The Jan Aushadhi Scheme has been made available throughout the country. Discuss the highlights of this scheme, its drawbacks and modifications.


- Government of India has launched Jan Aushadhi Scheme for making quality generic medicines available at reasonable prices for all, especially poor people throughout the country

- This is through outlets referred to as Jan Aushadhi Stores/JAS

- Bureau of Pharma PSUs of India has provided one time help of INR 2.5 lakh as furnishing and establishment costs

- Start up cost for setting up Jan Aushadhi outlet has thus been met

- A Jan Aushadhi store can also be opened outside hospital premises by NGA/SHG/Charitable Organisation/Institution

- Margin of 16% on sale price is built within the MRP of every drug

- JAS is also eligible for incentives associated with medicine sale up to 10% of monthly sales amount subject to ceiling of INR 10,000 per month for first 12 months

- For stores opening in NE states and difficult areas such as LWE or tribal areas indicated incentive is 15% of monthly sale amount subject to INR 15,000 per month

Drawbacks of Scheme

- Currently, only 111 of 138 Jan Aushadhi stores are operational in India.

- Public Health Foundation of India has been asked to study the scheme and it has not been successful on account of the following reasons as per them.

- Over-dependence on State Government support

- Inadequate supply chain management

- Non-prescription of generic medicines by doctors

- Free supply of drugs by state government

- Lack of public awareness


- Several remedial measures have been taken for addressing these drawbacks.

- The increasing number of products from 361 to 504 medicines as well as 161 surgical and consumable items

- Enhanced supply chain mechanism through appointing distributors and C&F agents in various states

- Raising the number of functional stores

- Strengthening of Operating Agency or BPPI via augmentation of manpower

- Relaxing eligibility criteria of operating agency for JAS

Facts and Stats

- Indian Drugs & Pharmaceuticals and Hindustan Antibiotics Ltd are two key pharma CPSEs which are key partners for providing medicines for schemes

- 131 medicines have been identified for PSUs and around 173 medicines have been forwarded to Pharma PSUs for exploring manufacturing of the same
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