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Pradhan Mantri Jan Aushadhi Yojana

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Quality medicines for all at affordable prices

Pradhan Mantri Janaushadhi Yojana aims at bringing down the health care budget of every citizen. The scheme targets in providing Generic Medicines to the public.

What are Generic Medicines?

Generic Medicines are Pharmaceutical drugs. However, they are equivalent to a branded dosage, quality, strength, performance and uses. They are as good as a branded drug. Food and Drug Administration requires these drugs to have the same quality and performance.

Generic drugs benefit the public in a better way as they are cheaper. They also have the same therapeutic value as that of the branded medicines.

Birth of PMJY

PMJY was first launched in 2008. The Government of India planned to distribute medicines to all at affordable prices through “Pradhan Mantri Bhartiya Janaushadhi Kendra”. It opened its first Kendra in Amritsar on 25th November 2008.

The Central Government initially launched the scheme with a plan of setting up at least one Kendra per district. So, in total 630 Kendras were to be set up in 630 Districts.

How did PMJY fail initially?

PMJY was a five year plan from 2008 – 2012. With 630 as a target number, the scheme could only achieve 157. The following were the observations for the failure

  1. Over – Dependence on the State Goverment
  2. Frequent out – of – stock situations
  3. Poor Supply chain Management
  4. Non – prescription of Generic Medicines by doctors
  5. Free medical distribution schemes by the State Governments of Tamil Nadu, Rajasthan and Haryana.
  6. Lack of awareness about the quality of Janaushadhi drugs.

“ SAP 2015” – To implement PMJY

A Strategic Action Plan approved by the Minister of Chemicals and Fertilizers, Shri Ananth Kumar in September 2015 identified the lags of the scheme. The report suggested various alternatives to make the scheme a success.

The “Product Basket” of the scheme

Product Basket is the governing list of the scheme. The list consists of the names of the drugs offered at affordable prices. IT contains more than 1100 items

  • Medicines – 1000
  • Surgical and Consumables – 154

Status of PMJY as on 31st January 2017

  • The supply chain of PMJY ® CWH – C&F agents – Distributors – PMJY Kendras
  1. CWH – Camping world Holdings
  2. C&F – Carrying and Forarding Agency
  • BBPI established a central warehouse at IDPL complex
    • BPPI – Bureau of Pharmaceutical PSU of India.
  • It also appointed 5 C&F agents and 40 Distributors.
  • The scheme opened more than 800 PMJY Kendras

Renaming of the scheme

The initial name of the scheme was Pradhan Mantri Janaushadhi Yojana. However, The new name of the scheme is Pradhan Mantri Bhartiya Janaushadhi Pariyojana.

The Key Features of PMBJP

The following are the key features of the Pradhan MAntri Bhartiys Jan Aushadhi PAriyojana

  1. The following Organizations are eligible to apply
    1. State Governments
    2. NGOs
    3. Private Hospitals
    4. Doctors
    5. Pharmacists
    6. Individual Entrepreneurs
  2. BPPI collects the applications
  3. The Beneficiary has to possess a Pharmacist registered with the State Council
  4. The goods are dispatched to the warehouses after a sample checking made by the BPPI sending the medicines to the NABL.
  5. Rs 1 Lakh of Reimbursement for furniture and fixtures
  6. Rs 0.5 Lakh of Reimbursement for computer, internet and peripherals
  7. An incentive from Rs 10, 000 to Rs 2.5 Lakhs will be creidited to the accounts directly. In the North Eastern States and naxal affected tribes, it is subjected from Rs 15, 000 to Rs 2.5 Lakhs.
  8. Trade margins are as follows
    1. MRP for Retailers – 20%
    2. MRP for Distributors – 10%
  9. BPPI also arranges training programmes for the inexperienced.
  10. For the applicants belonging to SC, ST and the differently – abled, medicines of worth Rs 50, 000 ould be given in advance.
  11. 30 Days of credit facilities to all the Kendras
  12. 60 days of credit facilities to all the depositors

IMA initiative to solve the problem of Doctor Prescription

IMA is Indian Medical Association. A doctor can practice medicine only after a certificate issued by this association. IT is conscious of 3 Lakh doctors spread over 0 states.

IMA is now recommending doctors to prescribe Jan Aushadhi drugs that are also generic to make the scheme successful!

Budget 2017 and PMJY

An amount of Rs 35 crores has been allocated for the implementation of the scheme.

Strategy of Implementation

  1. The Scheme requests the state governments and the Union Territories to open Pradhan MAntri Bhartiya Jan Aushadhi Kendran. Especially in the government run hospitals and medical colleges.
  2. Applications are to be invited through press and media. BPPI is to send personal invitations to all the private hospitals and institutions. Especially to the ones that are registered for Medical practicing.
  3. The PSUs like Panchayat offices, townships, Post Offices, Railway stations, Bus depots, etc are to be approached to open Pradhan Mantri Bhartiya Jan Aushadhi Kendras.

Test Yourself – Quiz on PMJY

  1. When as PMJY launched?
  2. Why did PMJY failed intitially?
  3. What is the incentive benefit of the scheme?
  4. Does the scheme provide branded medicines?
  5. What is the reimbursement of furniture under PMJY?
  6. Does the BPPI fix a trade margin for retailers and distributors?
  7. What is the subsidy for the differently – abled?
  8. Did the budget 2017 allocate an amount for PMJY?


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