How to open medical store through Pradhan Mantri Jan Aushadhi scheme with Government aid


Planning on opening a Government Jan Aushadhi (JAS) generic medicines store in your area? This article provides complete information on the features of the Pradhan Mantri Jan Aushadhi scheme (JAS), such as the financial aid given for setting up the store, how the medicines will be supplied, the mode of payment, etc. You will get details on who is eligible to open a JAS store, what is the store size requirement, the infrastructure & facilities needed, etc.

The Jan Aushadhi scheme launched through the Bureau of Pharma PSUs of India (BPPI), Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India aims to make available quality generic medicines at affordable prices through special outlets known as Jan Aushadhi stores. These stores have been opened in various districts of all the States. An individual, NGO or State Govt. appointed agency can set up a Jan Aushadhi store on fulfilling the specific eligibility criteria.

The BPPI will provide regular supplies of the generic medicines to your store through a super stockist or agent or centrally located warehouse. You can refer to the list of medicines & their Maximum Retail Price (MRP) at the official website of the BPPI: janaushadhi.gov.in. This list is regularly updated as per demand from the Jan Aushadhi Stores for new medicines.

FAQs on how to set up a Jan Aushadhi store

What are the basic requirements

  1. You must have your own space to set up the store. In case it is a rented space, you must have the requisite valid agreement with the owner of that space.

  2. The space for the store should meet the minimum required standards as laid down by the BPPI, which will also provide the basic design & layout.

  3. You must have a qualified pharmacist and a computer operator for the store.

  4. You must have the requisite financial ability to operate the store.

What are the infrastructure & facilities required?

  1. First and foremost, your store should have the basic facilities of proper racks/shelves to store the generic medicines and a counter for issuing bills & giving medicines to customers.

  2. You should have a refrigerator in the store to ensure proper storage of certain medicines at specific temperatures as per the policies of the Drugs and Cosmetic Act.

  3. The store should also be equipped with an office table with a computer and printer with requisite seating for the staff who work in your store.

  4. An Internet & landline telephone connection should also be set up. The computer configuration prerequisites are:
    • The processor should be Pentium IV/Dual Core

    • 1GB RAM (preferable 2GB)

    • 80GB HDD

    • TVSE MSP 240/250 series

    • 80 column Dot matrix printer (recommended)

    • 500 VA UPS

    The software requirements are:
    • Windows XP OS/ Vista /Windows 7 OS (32 bit)/Windows 8 OS

    • A good anti-virus software

    • The Internet connection should be of 512kbps

    Note: while the BPPI web-based software requires the afore-mentioned specifications, you can install a computer with the latest updated specifications.



  5. Ensure that there are at least 2 display boards over the store. One should be vertical and the other horizontal. Both should have signage as per guidelines provided by BPPI, including the logo design & colour and the language.

  6. Staff requirements: At your own cost, you will be expected to hire 3 competent people to operate the store.

Important notes
  • You can sell only those medicines which have been sourced & supplied by BPPI at the Jan Aushadhi store.

  • You must ensure that you have the requisite drug license & other permissions for operating a drug store.

  • You must comply with the mandatory requirements for storage of the medicines sold in the store.

  • The billing of all medicines sold must be done with the BPPI-provided software only. You cannot sell any medicine without this software.

  • You must operate the store between 8a.m. to 8p.m. If required, you may be required to operate it round the clock.

Who can open and operate the store?

There are 3 types of categories for whom individual guidelines have been issued to operate a store:
  1. Individuals: Unemployed pharmacists, individual entrepreneurs, doctors and registered medical practitioners.

  2. NGOs and the like: Charitable institutions/hospitals, an NGO, a private hospital, a Trust, Societies and self-help groups.

  3. An agency nominated by the State Government.

What are the eligibility criteria?

  1. Eligibility criteria for individuals: You can be an unemployed pharmacist or a doctor or a registered medical practitioner with sufficient finances to be able to operate the medical store. You should be able to provided Bank statements for the last 3 years as supportive evidence of your financial status. Alternatively, you should have a sanction letter from your Bank for extending a loan to you.

  2. Eligibility criteria for NGOs: You can be an NGO, charitable society, institution or self-help group with at least 3 years of successful operation in welfare activities, supported by audited accounts for the last 3 years.

  3. Eligibility criteria for State Govt. nominated agencies: The State Government should identify the appropriate operating agency & make provision for free space within hospital premises.

What financial aid will be provided to set up the store?

  1. Financial support for State Govt. agencies:
    • You will be provided one time financial aid up to Rs. 2.00 lakh as establishment cost.

    • You will be given up to Rs. 50,000/- as one time start-up cost for purchase of computer hardware etc. to be released by BPPI directly to the operating agency nominated by the State Government, generally on reimbursement basis supported by bills of actual purchases/establishment.

  2. Financial assistance for NGOs:
    • A margin of 16% for the JAS on the sale price of JAS is built in the MRPof each drug.

    • Your JAS is eligible for incentives based on sales of the medicines at the rate of 10% of monthly sales amount subject to a ceiling of Rs.10,000/- pm for a period of first 12 months. If you store is located in a North Eastern States or any difficult area (such as a tribal area or an area affected by Naxals), then the rate of incentive would be 15% of monthly sale amount subject to a ceiling of Rs. 15,000/-
      per month.

  3. Financial assistance for individuals:
    • A margin of 16% for the JAS on the sale price of JAS is built in the MRP of each drug.

    • Your JAS is eligible for incentives based on sales of the medicines at the rate of 10% of monthly sales amount subject to a ceiling of Rs.10,000/- pm for a period of first 12 months. If you store is located in a North Eastern States or any difficult area (such as a tribal area or an area affected by Naxals), then the rate of incentive would be 15% of monthly sale amount subject to a ceiling of Rs. 15,000/-
      per month.

Note for individuals and NGOs: You should make a request for such incentive-linked grant accompanied with a report from the concerned Nodal Officer of BPPI. The financial assistance would be directly released to the entities from BPPI on receipt of requisite information/documents.

What is the payment system?

BPPI will arrange for the supply of the generic medicines to your Jan Aushadhi store as per the following plans:
  • For stores opened by a Stat Govt.-identified agency: The credit facility will not exceed 60 days from the date of dispatch of medicines.

  • For stores opened by individuals, NGOs, etc: The medicines will be supplied only against advance payments.

Application process

Procedure for individuals and NGOs


You can apply to BPPI either on the basis of advertisements issued or suomoto with a complete application along with the following documents:
  1. Own space or hired space duly supported by proper lease agreement.

  2. Minimum required space conforming to standards as approved by the BPPI i.e.120 sq. ft.

  3. Sale license from competent authority (retail drug license in the name of the applicant and/or Tin Number

  4. Proof of securing a pharmacist with computer knowledge. For this, you will need to give the pharmacist's name and registration with the State Council.

  5. Financial capacity to run the Store supported by audited accounts for the last 3 years. For this, you can provide the Bank statements for the last 3 years or a sanction letter from the Bank for extending loan in case of individuals.

Once you submit your application, BPPI officials may inspect the premises where you wish to set up the Jan Aushadhi store. On fulfilling all the requisite eligibility criteria and store requirements, BPPI will draw up an agreement with you prior to your starting the operation of the store.

Procedure for State Govt. nominated agencies

BPPI will communicate with the State Government with details of the Jan Aushadhi Scheme with a request to open Jan Aushadhi Stores in the State. The Dept. of Health of the State can then nominate an operating agency who has the capability to operate the store. The department would also require to contact the District Hospital Authority to provide the minimum space of 120sq. ft. on the hospital premises, with the store being located in a place that is accessible to OPD patients & given to the agency free of cost. The State Government would be expected to needs to provide details & instructions to the hospital and doctors for prescribing generic medicines.

Specifically, the operating agency must have:
  1. A sale license from the competent authority, i.e. a retail drug license in the name of the Jan Aushadhi store and /or Tin number.

  2. Clear proof of securing a pharmacist with computer knowledge. For this, you will need to give the pharmacist's name and registration with the State Council.

Note: The BPPI will draw up a tripartite agreement between BPPI, the Health Department of the State and the operating agency before the agency receives the supply of medicines and starts operating the store.



Government Aid

In September 2016, the Ministry of Chemicals and Fertilizers issed a press release stating that the Government will offer Rs.15,000/- per month, up to a maximum of Rs.2.5lakh to set up the Jan Aushadhi franchise store. Products sold at the stores will include drugs, including antibiotics, anti-cardiac, anti-infective and gastrointestinal medicines, surgical equipment and medical devices. More details will be issued later.

Where to apply

You should send your application in the relevant format (see important links below for application form) along with the required documents and a Demand Draft for Rs. 2000/- (non-refundable) drawn in favour of BPPI payable at Gurgaon to:
The General Manager (A&F),
Bureau of Pharma Public Sector Undertakings of India (BPPI),
IDPL Corporate Office, IDPL Complex,
Old Delhi Gurgaon Road,
Dundahera, Gurgaon–122016
Haryana

Important links:
  1. Guidelines and application form for individuals: http://janaushadhi.gov.in/data/GuidelinesIndividuals.pdf

  2. Guidelines and application form for NGOs: http://janaushadhi.gov.in/data/GuidelinesNGO.pdf

  3. Guidelines and application form for the State Govt. appointed agency: http://janaushadhi.gov.in/data/GuidelinesState.pdf

  4. Brochure: http://janaushadhi.gov.in/brochure.html


Article by Vandana
Vandana is based in India with over 15 years experience as a freelance writer. Writing, no doubt, is her primary passion! Having learned the art of blogging from ISC, Vandana is enjoying the thrills of blogging, taking pleasure in sharing information & getting good pageviews at her various blogs.

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Comments

Author: Vandana24 Dec 2016 Member Level: Platinum   Points : 2

Those who wish to become Distributors or Carrying & Forwarding Agents for the Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMJAK), which is the new name of the JAS scheme, can refer to the December 2016 notification:

  1. Distributor application procedure

  2. CFA application procedure


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