Dr. Mansukh Mandaviya, Union Minister for Chemicals & Fertilizers and Health & Family Welfare inaugurated a credit assistance program for Jan Aushadhi Kendras, here today. In this regard, he presided over the exchange of an MoU between Small Industries Development Bank of India (SIDBI) and Pharmaceuticals and Medical Devices Bureau of India (PMBI). He also launched a website for credit assistance to Jan Aushadhi Kendras: https://jak-prayaasloans.sidbi.in/home.

Addressing the gathering, Dr Mandaviya said, “Medicines which are affordable and accessible are an essential requirement for any society. Prime Minister Shri Narendra Modi has called them ‘Sanjeevani’ for the poor. From only 80 Jan Aushadhi Kendras in 2014, there are around 11,000 units operating across the country today.” He also said that “it is estimated that around 10 to 12 lakh people visit these Jan Aushadhi Kendras every day, providing them with significant savings and access to requisite medicines.”

Highlighting the Union Government’s efforts towards strengthening the network of Jan Aushadhi Kendras in the country, Dr Mandaviya said that a lot of effort went into making the procurement process robust, expanding the basket of products offered, maintaining a regular supply chain network as well as in ensuring stringent quality checks and control. He also emphasised that the government provided financial assistance to individual operators of these Jan Aushadhi Kendras, including additional assistance for those located in remote and hilly regions, to encourage them to open these centres. This, he said, provided small entrepreneurs with financial autonomy as well as strengthened the network and reach of Jan Aushadhi Kendras across the country.

Expressing his elation at the MoU between SIDBI and PMBI, the Union Minister stated that “this MoU would emerge as a blessing for the small and new entrepreneurs of Jan Aushadhi Kendras.” Noting the potential of this MoU in further increasing, strengthening and modernising the network of Jan Aushadhi Kendras in the country, he urged the Ministry and SIDBI officials to highlight the benefits of this initiative to the states and people at the ground level to ensure its optimum utilisation.

The Union Minister also felicitated the individuals involved in making this credit assistance program successful as well as some of the beneficiaries of this initiative.

Shri Sivasubramanian Raman, Chairman & Managing Director, SIDBI informed that the credit assistance program takes advantage of both GST and the Digital Public Infrastructure (DPI) of India to provide unsecure working capital loan for small businesses. He said that “DPI is currently based on the layers of identity (through Aadhar) and payment (through UPI linked with Aadhar). Today we are adding a third layer, a ‘credit layer’ using the other two layers in order to make credit flow to crores of small businesses who are not able to secure loans from banks and then get exploited by moneylenders.”

Background:

Over the past few years Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana has successfully delivered the benefit of affordable and quality medicines for all Indian citizens. The commitment of Hon’ble Prime Minister has successfully ensured its larger foot print by covering the entire nation with around 11,000 Jan Aushadhi Kendras and it has now been decided to increase its geographical reach by increasing the number of Jan Aushadhi Kendras to 25,000 in next 2 years.

These Jan Aushadhi Kendras which are run by private entrepreneurs and with the support of the Government in the form of incentives have been able to provide around 2000 types of medicines and 300 types of surgical devices. It is estimated that around 10 to 12 lakh people visit Jan Aushadhi Kendras every day and save their money while buying requisite medicines.

While individuals have been saving regularly on the cost of medicines it has significantly lowered the out-of-pocket expenditure for all such families. In all, Indian citizens have saved more than Rs. 28,000 crores over the last 10 years period while buying medicines from Jan Aushadhi Kendras.

In order to facilitate invoice-based financing to the entrepreneurs running the Jan Aushadhi Kendras and to also give them support for infrastructural establishment of retail medical outlets, Small dustries Development Bank of India (SIDBI) and Pharmaceuticals & Medical Devices Bureau of India (PMBI) have come together by signing 02 Memorandum of Understandings (MoUs).

After a successful completion of a pilot credit programme to provide working capital assistance to Jan Aushadhi Kendras it has been decided to go ahead to provide credit facility of working capital to around 11,000 existing and proposed 15,000 Jan Aushadhi Kendras. SIDBI will offer the project loan for a credit limit up to Rs. 2 lakhs at a very competitive and affordable interest rate, which will work as a working capital and with easy recovery process. The entire ecosystem will be working on a digital mode while ensuring ease of doing business.

The 2^nd Memorandum of Understanding for project loan envisages funding of 80% of the project cost i.e. up to Rs. 4 lakhs again on a very lucrative interest rate and easy repayment conditions, which will facilitate expenses on Furniture & Fixtures, Computer, AC, Refrigerator etc. as a handholding support in initial phase of set up of Jan Aushadhi Kendra.

SIDBI proposes to use GST-Sahay technology platform while disbursing funds to these micro and small enterprises through the 2 MoU’s and it will be a big boost for the entire scheme. Coming together of two organizations i.e. SIDBI and PMBI, it will facilitate the financing for the upcoming entrepreneurs, which will definitely leverage the efforts of the Government in its objective to provide affordable and quality medicines through the already popular network of Jan Aushadhi Kendras.

Shri Arunish Chawla, Secretary, Dept. of Pharmaceuticals, Ministry of Chemicals and Fertilizers; Shri Bhushan Kumar Sinha, Joint Secretary, Dept. of Financial Services, Ministry of Finance; Shri Ravi Dadhich, CEO, PMBI and senior officials of the Union Government were present on the occasion.

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MV

MoCF/Launch of Credit Program for JAKs/12^th March2024