Guidelines for Opening of New Pradhan Mantri Bhartiya Janaushadhi Kendra

PMBJP Scheme announced by hon’ble Prime Minister on 1st July, 2015. Vision of the scheme is to bring down the healthcare budget of every citizen of India through providing Quality generic medicines at affordable price.

1. State Governments or any organization / reputed NGOs / Trusts / Private hospitals / Charitable institutions / Doctors / Unemployed pharmacist/ individual entrepreneurs are eligible to apply for new Jan Aushadhi stores.

2. The applicants shall have to employ one B Pharma / D Pharma degree holder as Pharmacist in their proposed store.

3. Applications shall be submitted to BPPI either online or offline.

4. Jan Aushadhi stores can be located within Government hospital premises as well as Private hospital premises or anywhere outside.

5. In addition to medicines and surgical items supplied by BPPI, Jan Aushadhi stores will be allowed to sell allied medical products commonly sold in chemist shops so as to improve the viability of running the Jan Aushadhi store.

6. BPPI shall source the medicines both from Pharma PSUs as well as from Private companies. However, PSUs would have the first right to supply the products that they manufacture in their plants. BPPI shall ensure that private manufactures are only reputed organisations by incorporating strict terms and conditions in the tender specifications.

7. Tendering for medicines shall be only through e tendering. All the tendering process shall be completely transparent giving equal opportunity for all the participants.

8. BPPI shall establish a Central Ware House, C&F agents at different locations and Distributors in all the States/UTs.

9. On receipt of goods at their central ware house, BPPI shall draw samples and sent them to NABL accredited laboratories for inspection. Only after receipt of quality certification from the inspecting laboratories, goods shall be dispatched to C&F agents and Distributors.

10. BPPI shall plan and undertake suitable media activities so as to spread the message of generic medicines and to achieve the objectives of the PMBJP.

11. Financial support to applicants: An amount of Rs.2.5 lakhs shall be extended to NGOs/agencies/individuals establishing Jan Aushadhi stores in Government hospital premises where space is provided free of cost by Government to operating agency: Rs. 1 lakh reimbursement of furniture and fixtures Rs. 1 lakh by way of free medicines in the beginning Rs. 0.50 lakh as reimbursement for computer and peripherals, internet, etc. For the Jan Aushadhi stores established anywhere else by private entrepreneurs / institutions / NGOs / Trusts / Charitable organizations which are linked with BPPI headquarters through internet shall be extended an incentive up to Rs. 2.5 lakhs. This will be given @ 15% of monthly sales subject to a ceiling of Rs. 10,000/- per month up to a limit of Rs. 2.5 lakhs. In north easternStates, i.e. naxal affected areas and tribal areas, the rate of incentive will be 15% and subject to monthly ceiling of Rs. 15,000 and total limit of Rs. 2.5 lakhs.

12. 20% trade margin shall be included in MRPfor retailers and 10% for distributors.

13. Jan Aushadhi stores and Distributors will be allowed 2% of total sales or actual loss, whichever is lower, as compensation against expiry of medicines. Expired goods need not be returned to BPPI. Stocks expiring at the C&F level will entirely be the loss of BPPI.

14. Credit facility will be given to all Jan Aushadhi stores for 30 days against postdated cheques. Distributors will also get credit of 60 days againstpostdated cheques. C&F agencies will have to deposit a security amount depending upon the business.

15. BPPI shall arrange suitable training program for the entrepreneurs who do not have any experience in running medicine shops.

16. Institutions / Charitable organisations / NGOs who are procuring medicines for own consumption / free distribution to poor and needy will be allowed to procure medicines from BPPI CFA agents.

The branded (Generic) medicines are sold at significantly higher prices than their un-branded generic equivalents, though are identical in the therapeutic value. Given the widespread poverty across the country, making available reasonably priced quality generic medicines in the market would benefit everyone. With this objective, the Pharma Advisory Forum in its meeting held on 23rd April, 2008, decided to launch the PMBJP KENDRA Campaign – starting with the sale of generic medicines through dedicated sales outlets called PMBJK ( Pradhan Mantri Bhartiya Janaushadhi Kendra) in various districts of the country. It is proposed that at least one PMBJK will be opened in each of the 734 districts of the country to be extended to sub-divisional levels as well as major towns and village centers.

BPPI, the implementation agency for Pradhan Mantri Bhartiya Janaushadhi Kendra was established in December, 2008 under the Department of Pharmaceuticals, Government of India, with the support of all the CPSUs and has been registered as an independent society under the Societies Registration Act, 1860 as a separate independent legal entity in April, 2010. BPPI follows the provisions of GFR, 2005 as amended from time to time, the CVC guidelines, and instructions from the Department of Pharmaceuticals. The defined roles of BPPI are as follows:

• Make quality generic medicines available at affordable prices for all
• Marketing of generic drugs through the Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK)
• Procurement of medicines from Central pharma PSUs and Private Sectors
• Monitoring proper running of PMBJK

Individual applicants must be having D. Pharma/B. Pharma Degrees, or he/she have to employ D. Pharma/B. Pharma degree holders and produce proof of the same at the time of submitting applications or at the time of final approval. Any organization, N.G.O. applying for a PMBJK will have to employ B. Pharma / D. Pharma degree holders and produce proof of the same at the time of submitting applications or at the time of final approval. In govt hospital premises including medical colleges, the preferred agency would be reputed NGOs/Charitable organizations, but individuals would also be eligible.

a. Operating agency will be provided 20% margin on MRP (Excluding taxes) of each drug.

b. Special Incentive: Special incentive shall be granted for PMBJK opened by the Women  entrepreneurs, divyaang, SC, ST & any entrepreneurs open ‘Janaushadhi Kendra (PMBJK)’ at aspirational districts (backward district) as notified by the NITI Aayog & in Himalayan, Island territories and North- Eastern. An amount of Rs. 2.00 lakhs in addition to normal incentives as applicable is to be given to above mentioned entrepreneurs as mentioned below :–

(i) Rs. 1.50 lakh reimbursement of furniture and fixtures

(ii) Rs. 0.50 lakh as reimbursement for Computer, internet, printer, scanner etc.

This will be one-time grant for opening of new PMBJK against submission of original bills and restricted up to actual expenditure incurred.

Note: “The Special incentive shall be granted to the Women entrepreneurs, Divyang, SC, ST & any entrepreneurs open ‘Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK)’ at aspirational districts as notified by the Niti Aayog, In Himalayan, Island territories and North Eastern states based on One Family – One Grant formula. It means any above mentioned eligible PMBJK owner shall be granted special incentive only once and no other person from his/her family/relative shall be granted special incentive thereafter. For this Purpose, “Relative” means – “Relative”, in relation to an individual, means the husband, Wife, unmarried dependent brother or sister or any lineal ascendant or descendant of that individual.”

c. Normal Incentive – PMBJK run by other entrepreneurs/Pharmacist/NGOs/NGOs & Charitable organization that are linked with BPPI headquarters through software will get incentive up to Rs. 5.00 lakhs. The incentive will be given @ 15% of monthly purchase made from BPPI by these PMBJKs subject to ceiling of Rs 15,000/- per month up to total limit of 5.00 lakhs. It will also cover PMBJK opened by Women entrepreneurs, Divyang, SC, ST & any entrepreneurs open ‘Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK)’ at aspirational districts as notified by the Niti Aayog, In Himalayan, Island territories and North Eastern state.

This will be applicable to existing PMBJK also whose existing limit of incentives of Rs 2.50 lakh is fully disbursed, moreover it will also cover the PMBJK opened in government premises to Whom one-time grant of Rs 2.50 lakh was disbursed. They will get incentive of Rs 2.50 lakh based on purchase made by them from BPPI as per other terms and conditions applicable to all PMBJKs.

Further, any PMBJK opened in Government premises will get normal incentives as applicable to PMBJK in private premises.

a. Own space or hired space (Minimum 120 sq. ft.) duly supported by proper lease agreement or space allotment letter. Applicant will arrange the space for running the Pradhan Mantri Bhartiya Jan Aushadhi Kendra & BPPI will have no role for arranging space.

b. Proof of securing a pharmacist with name, Registration with the State Council etc. (or it can be submitted at the time of final approval of PMBJK)

c. If applicant is under the category of Women entrepreneurs, Divyang, SC, ST & any entrepreneurs of aspirational districts (backward district) as notified by the Niti Aayog, in Himalayan, Island territories and North- Eastern states, the applicant has to submit suitable certificate/proof from respective authorities along with undertaking at the time of application. The applicant must mention the category for getting the suitable benefit and category mentioned in application form. Once the category is selected by the applicant, later on applicant will not be able to change it in future due to any reason.

d. Non-refundable application fees of Rs. 5,000/- is to be deposited along with application form. Application fee is not applicable in case of applicant belongs to the category of Women entrepreneurs, Divyang, SC, ST & any entrepreneurs of aspirational districts (backward district) as notified by the Niti Aayog, in Himalayan, Island territories and North- Eastern states. For exemption of fee the applicant has to submit the proof of their category.

e. The following distance policy shall be observed, while approving the new PMBJK. Hence, applicant is required to follow the mentioned distance policy while applying for the new PMBJK:

Important operating terms and conditions for operating PMBJK are given below:

a) Applicant will enter into agreement before beginning operations of “Pradhan Mantri Bhartiya Janaushadhi Kendra”. All operations of Pradhan Mantri Bhartiya Janaushadhi Kendra will be conducted as per agreement terms and conditions.

b) It shall be the responsibility of the applicant to obtain drug license in the name of “Pradhan Mantri Bhartiya Janaushadhi Kendra” and other permissions to run a drug store. Compliance to all statutory requirements for storage of drugs shall be ensured by the applicant.

c) Applicant will use the premises solely for the purpose for which it has been allotted and for no other purpose and shall not part with the premises, sub-let the premises to anyone directly or indirectly.

d) All billings should be done using software provided by BPPI. No medicine can be sold in PMBJK without using the software provided by BPPI.

e) PMBJK operators will be allowed to sell allied medical products, commonly sold in chemist shops but they are not allowed to sell any medicines other than products of BPPI.

f) Supply will be made against the advance payment for dispatch of goods. Detailed terms and conditions are given in draft agreement and may be referred by applicant.

a) For proper implementation of the scheme, BPPI would render all required assistance to the operating agency for running the PMBJK for furthering the objective of the Pradhan Mantri Bhartiya Janaushadhi Pariyojana.

b) BPPI shall also facilitate the supply of affordable quality generic medicines, surgical items, consumable etc. through its supply chain to Pradhan Mantri Bhartiya Janaushadhi Kendra

against the advance payment for dispatch of goods.

Non-refundable application fees of Rs 5,000/- is to be deposited along with application form. Application fee is not applicable in case of applicant is under the category of Women entrepreneurs, Divyang, SC, ST & any entrepreneurs of aspirational districts as notified by the Niti Aayog, in Himalayan, Island territories and North- Eastern states

Duly filled application form in the prescribed format along with required self-attested documents shall be submitted to below mentioned address in a closed envelope/cover clearly super scribed as “Application for New PMBJP KENDRA”

To,

The CEO,

Bureau of Pharma Public Sector Undertakings of India (BPPI),

8th Floor Videocon Tower,

Block E1 Jhandewalan Extension,

New Delhi –110055

Tel – 011-49431800

For detail information please visit :http://janaushadhi.gov.in/

Direct link for official Guideline : janaushadhi.gov.in/