NON-FCRA PROJECT: JAN AUSHADHI: GENERIC MEDICINE CAMPAIGN II FOR NGOS!

 

About JAS: The Jan Aushadhi scheme launched by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India aims to make available quality generic medicines at affordable prices to all through special outlet known as Jan Aushadhi store opened/to be opened in each district of all the States. The new business plan approved by the Department of Pharmaceuticals in August, 2013 brought out it no. of changes to make the campaign a real success.

Role of NGOs/Charitable/Co-operative: Apart from State Governments, The Jan Aushadhi Stores may also be run b y NGOs/Charitable/Cooperative/Government bodies,Red Cross, etc and hence their role is important. Recurring expenses on maintenance and running of the stores outside the government hospitals may have to be incurred by such bodies. For this purpose, reasonable margins are built up in the MRP of Jan Aushadhi Drugs.

some of the important steps taken to enable this are:

A. Price control of Scheduled Drugs through the National Pharmaceutical pricing authority (NPPA): Under the Drug Price Control Order, 1995, NPPA): Under the Drug Price Control Order, 1995, NPPA has been given the mandate to control and fix the maximum retail prices of a number of scheduled/listed bulk drugs and their formulations, in accordance with well defined criteria and methods of accounting, relating to costs of production and marketing Notably therefore, the prices of these medicines have remained quite stable and affordable.

B. Price regulation of Non-Scheduled Drugs: Apart from the scheduled medicines under DPCO, 1995, the NPPA monitors the prices of other medicines not listed in the DPCO schedule, such that they do not have a price variation of more than 10% per annum. This has further helped in keeping the prices of most of the non-scheduled medicines stable and affordable.

C. Uniform VAT of 4% on medicines: Government has fixed a uniform and low rate of 4% VAT on medicines in the country. This policy has been adopted, in almost all the States in the country, and has reduced the incidence of sales tax on medicines and thereby assisted in keeping their prices low.

D. Reduction in Excise duty from 16% to 4% Further and in addition to above low, VAT rates, the [present government had, as part of the Budget for the year 2008-09 reduced the excise duty on medicines from 16% to 8%. This has been further reduced to 4 percent as from 8th December, 2008. This has again, played a crucial role in keeping the prices of most of the medicines at reasonable levels. Not satisfied with the above regulatory and financial steps for ensuring greater availability of medicines at affordable prices to all, specially the poorer masses, the government has decided to launch a country wide Jan Aushadhi Campaign.

Eligibility: NGOs/ Charitable Society/Institution /Self help Group should have experience of minimum 3 years of successful operation in welfare activities, supported by audited accounts for the last three years.

Procedure to be followed: Entities mentioned above may approach BPPI either on the basis of advertisement issued by BPPI or suomoto with a complete application along with the following supporting documents:

(i) Own space or hired space duly supported by proper lease agreement;

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

(iii) Sale license from competent authority (Retail drug license in the name of the applicant and/or Tin No);

(iv) Proof of securing a pharmacist with computer knowledge (name of the pharmacist, Registration with the State Council etc. needs to be furnished);

(v) Financial capacity to run the Store supported by audited accounts for the last three years (Bank Statements for the last 03 years).