Credit Assistance Program for Jan Aushadhi Kendras

• 16 Mar 2024

For Prelims: Jan Aushadhi Kendras, SIDBI, Goods and Services Tax, Digital Public Infrastructure, PMBJP Scheme

For Mains: India’s Pharma Sector and issues, Generic Medicines and its need, Steps taken to promote generic medicine in India, Government Policies & Interventions, Health.

Source: PIB

Why in News?

Recently, the Union Minister for Chemicals & Fertilizers and Health & Family Welfare, inaugurated a credit assistance program for Jan Aushadhi Kendras (JAK), aiming to enhance accessibility to affordable medicines across India.

• As a part of the program a memorandum of understanding (MoU) was signed between the Small Industries Development Bank of India (SIDBI) and the Pharmaceuticals and Medical Devices Bureau of India (PMBI) to provide financial assistance and support infrastructure development for JAKs.

What is the Credit Assistance Program for Jan Aushadhi Kendras?

• The Government of India under this program will provide credit/loan assistance to operators/entrepreneurs running Jan Aushadhi Kendras across the country.
• The credit assistance program utilizes both Goods and Services Tax (GST) and India's Digital Public Infrastructure (DPI) to offer unsecured working capital loans to small businesses.
  • Through this program, operators can access unsecured working capital loans and infrastructure funding to establish and maintain their Jan Aushadhi Kendras.
  • The program seeks to empower small entrepreneurs, enhance the accessibility of affordable medicines, and strengthen the healthcare ecosystem in India.

What are Jan Aushadhi Kendras?

• About:
  • Jan Aushadhi Kendras (JAKs) is a government initiative launched to provide affordable and quality medicines to the public.
    • They operate under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) scheme of the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.
• PMBJP Scheme:
  • The Jan Aushadhi Scheme, revamped as Pradhan Mantri Jan Aushadhi Yojana (PMJAY) in September 2015, aimed to make quality medicines available at affordable prices, particularly for the poor and disadvantaged.
  • In November 2016, the scheme underwent further enhancement and was renamed as PMBJP to strengthen its impact.
  • PMBJP, focuses on providing generic drugs through exclusive outlets known as Jan Aushadhi Kendras.
    • These stores offer generic medicines at significantly lower prices compared to branded drugs, ensuring reduced out-of-pocket expenses for healthcare.
    • Generic drugs provided by PMBJP stores are equivalent in quality and efficacy to expensive branded drugs, promoting the rational use of medications.
• Benefits of Jan Aushadhi Kendras:
  • Increased affordability of medicines: JAKs have significantly reduced healthcare costs for many people and reduced out-of-pocket expenditure.
    • Indian citizens have collectively saved over Rs. 28,000 crores over the last decade by purchasing medicines from Jan Aushadhi Kendras.
  • Improved access to medicines: JAKs have made essential medicines more readily available in underserved areas.
    • Around 10 to 12 lakh people visit JAKs daily.
  • Promotion of rational medicine use: JAKs provide information and counselling on the appropriate use of medicines, which can help to reduce misuse and overuse.
• Expansion of Jan Aushadhi Kendras:
  • PMBJP has expanded significantly in recent years, from only 80 Jan Aushadhi Kendras in 2014, to around 11,000 units operating across the country today.
  • The government aims to further increase the number of Jan Aushadhi Kendras to 25,000 in the next two years.

SIDBI

• The Small Industries Development Bank of India (SIDBI) is the primary financial institution for promoting, financing, and developing the Micro, Small, and Medium Enterprise (MSME) sector in India.
• SIDBI was established in 1990 and is the apex regulatory body for licensing and regulating MSME finance companies. It is under the jurisdiction of the Ministry of Finance, SIDBI is headquartered in Lucknow and has offices all over the country.
• SIDBI also supports national climate change action plans and promotes responsible business practices, such as energy efficiency, cleaner production, and sustainable financing.

PMBI

• The PMBI is a government agency that coordinates the supply, procurement, and marketing of generic drugs through the PMBJKs.
• The PMBI is part of the Department of Pharmaceuticals and is responsible for implementing the PMBJP.

What are India's other Initiatives for Affordable Healthcare?

• Ayushman Bharat Pradhan Mantri Jan Arogya Yojana.
• National Health Mission (NHM).
• Pradhan Mantri Swasthya Suraksha Yojana .
• Janani Shishu Suraksha Karyakram (JSSK).
• Rashtriya Bal Swasthya Karyakram (RBSK).
• Rashtriya Arogya Nidhi (RAN).
• Affordable Medicines and Reliable Implants for Treatment (AMRIT) Deendayal Outlets.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Mains:

Q.1 How is the Government of India protecting traditional knowledge of medicine from patenting by pharmaceutical companies? (2019)

Q.2 Public health system has limitations in providing universal health coverage. Do you think that private sector could help in bridging the gap? What other viable alternatives would you suggest? (2015)