On 12th March 2024, Union Minister, Dr Mansukh Mandaviya, Ministry of Chemicals and Fertilizers(MoC&F), inaugurated a credit assistance program of the Small Industries Development Bank of India (SIDBI) for Jan Aushadhi Kendras(JAKs) during the event held in New Delhi, Delhi.
- He also presided over the exchange of Memorandum of Understanding (MoU) between SIDBI and Pharmaceuticals and Medical Devices Bureau of India (PMBI) to offer term loan and working capital credit to JAKs.
- He also launched the website(https://jak-prayaasloans.sidbi.in/home) for credit assistance to Jan Aushadhi Kendras.
Key People: Arunish Chawla, Secretary, Dept. of Pharmaceuticals, MoC&F; Ravi Dadhich, Chief Executive Officer (CEO), PMBI were present during the event.
Note: PMBI established in 2008 by Department of Pharmaceuticals, MOC&F is the implementing agency for the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).
About the MoU:
i.The MoU between SIDBI and PMBI aims to enhance, expand, and modernise the Jan Aushadhi Kendra network across India. This would benefit the small and new entrepreneurs of Jan Aushadhi Kendras.
ii.Under the partnership between SIDBI and PMBI, project loans up to Rs. 2 lakhs will be extended to small entrepreneurs operating JAKs.
Points to note:
i.The credit assistance program will utilise Goods and Services Tax (GST) and the Digital Public Infrastructure (DPI) of India to provide unsecure working capital loan for small businesses.
ii.SIDBI will offer loan to operators of JAKs without any collateral.
Background:
i.SIDBI and PMBI have signed 2 MoUs to facilitate invoice-based financing to the entrepreneurs running JAKs and to support infrastructural establishment of retail medical outlets.
ii.After the successful completion of pilot credit programme to provide working capital assistance to JAKs. SIDBI will offer credit facility of working capital to around 11,000 existing and proposed 15,000 JAKs.
iii.SIDBI will offer the project loan for a credit limit up to Rs 2 lakhs at affordable interest rate.
iv.The 2nd MoU for the project loan envisages funding of 80% of the project cost (up to Rs 4 lakhs).
v.SIDBI will utilise the GST-Sahay technology platform and disburse funds to MSMEs.
Additional info: The government of India (GOI) aims for 25,000 JAKs by March 31, 2026, enhancing healthcare accessibility nationwide. As of 31st January 2024, Around 10,624 JAKs are operating across India.
About Small Industries Development Bank of India (SIDBI):
Chairman & Managing Director (CMD)- Sivasubramanian Ramann
Headquarters– Lucknow, Uttar Pradesh
Established on– 2nd April 1990
