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I. JAN AUSHADHI – GENESIS

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 Jan Aushadhi Campaign - starting with the sale of generic medicines through dedicated sales outlets called JAN AUSHADHI STORES (JAS) in various districts of the country. It is proposed that at least one JAS will be opened in each of the 630 districts of the country to be extended to sub-divisional levels as well as major towns and village centers.

II. BPPI- Bureau of Pharma PSUs of India BPPI, the implementation agency for Jan Aushadhi 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 Jan Aushadhi Stores (JAS)

 Procurement of medicines from Central pharma PSUs and Private Sectors

 Monitoring proper running of JAS

III. Eligibility Criteria to open Jan Aushadhi Store:

Individual applicants other than doctors and registered medical practitioners, should mandatorily be persons having B. Pharma and D. Pharma Degrees. Any organization applying for a JAS will have to employ B. Pharma / D. Pharma degree holders and produce proof of the same at the time of submitting applications. In govt hospital premises including medical colleges, the preferred agency would be reputed NGOs/Charitable organizations but individuals would also be eligible.

IV. Margins and Incentives

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

b. JAS run by private entrepreneurs / pharmacists / NGOs / NGOs & Charitable organizations that are linked with BPPI headquarters through internet (using BPPI provided software) will get incentive upto 1.5 lakhs. This will be given @ 10% of monthly sales subject to a ceiling of Rs 10,000/ per month upto total limit of 1.5 lakhs. In NE states, and naxal affected areas, tribal areas, the rate of incentive will be 15% and subject to monthly ceiling of Rs.15,000. upto total limit of 1.5 lakhs

V. Requirements for applying for opening new JAS

(i) Application on prescribed format duly filled along with demand draft for Rs. 2000/-

(ii) Own space or hired space (Minimum 120 sq feet) duly supported by

proper lease agreement or space allotment letter. Applicant will arrange the space for running the Jan Aushadhi Generic Drug Store &

BPPI will have no role for arranging space.

(iii) 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

JAS)

VI. Important Operating Terms and Conditions

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

a) Applicant will enter into agreement before commencing operations of “Jan

Aushadhi Store”. All operations of Jan Aushadhi Store 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 “Jan Aushadhi Medical Store” 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 JAS without using the software provided by BPPI.

e) JAS 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 Jan Aushadhi Medicines.

f) BPPI’s Distributor will take back Expiry/Breakage to the maximum extent or upto 2% of the total purchase value by JAS.

g) Credit period of 30 days will given from date of receipt of medicines by JAS but post datedcheque will be required to given by JAS in advance against goods supplied. Detailed terms and conditions are given in draft agreement attached and may be referred by applicant.

VII. Role of BPPI.

a. For proper implementation of the scheme, BPPI would render all required assistance to the operating agency for running the JAS for furthering the objective of the Jan Aushadhi Program.

b. BPPI shall also facilitate the supply of affordable quality generic medicines, surgical items, consumable etc through it’s supply chain to Jan Aushadhi Generic Drug Stores with appropriate margins and

credit facilities upto 30 days.