Small Industries Development Bank of India (SIDBI) has signed an MoU with Pharmaceutical & Medical Devices Bureau of India (PMBI) to provide term loan and working capital credit to Jan Aushadhi Kendras (JAKs) being set up by aspiring entrepreneurs. JAKs are administered by PMBI, Department of Pharmaceuticals, Ministry of Health & Family Welfare and Chemicals & Fertilizers and they provide generic medicines to citizens at affordable prices under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).
There are more than 10000 operational JAK stores and Hon’ble Prime Minister has announced an ambitious plan to open an additional 15000 new JAK stores over next 2 years. SIDBI has leveraged its GST Sahay application to provide invoice-based working capital to JAKs and its Prayaas platform to provide project term loan for setting up new JAK stores.
Speaking on the occasion, Dr. Mansukh Mandaviya, Hon’ble Union Minister of Health and Family Welfare and Chemicals & Fertilizers, explained how the Government has worked to scale up the JAK program over the last 8 years. He also emphasized on the strong processes adopted to ensure quality of the medicines being made available at the stores.
He expressed satisfaction at the joint initiative of SIDBI and PMBI and mentioned that it will go a long way in improving the profitability of JAK stores. The term loan will provide an opportunity to young citizens of the country to aspire and set up JAK stores of their own.
Shri S. Ramann, CMD, SIDBI said, ‘It is a proud moment for SIDBI to be associated with this prestigious and visionary program which is for the benefit of all the citizens of the country. SIDBI has completely digitized its credit operations and for the JAK program it has used latest digital technology and best-in-class Digital Public Infrastructure (DPI) of the country to create a customized credit program for JAKs’
Brief of SIDBI and PMBI:
SIDBI: SIDBI has been set up as the principal financial institution for the promotion, financing, and development of MSMEs and to coordinate the functions of the institutions engaged in similar activities. SIDBI has been undertaking various projects to support micro and small informal enterprises in accessing affordable finance from the formal banking channels.
SIDBI has been extensively using digital innovations in tracking transactional history and financial details of the micro and small enterprises from source through digital ecosystems like account aggregators for bank transactions, GST records, or through Anchor channels etc.
PMBI: PMBI is the implementing agency of the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) launched by the Department of Pharmaceuticals, Ministry of Health & Family Welfare and Chemicals & Fertilizers, GoI. Under the scheme, dedicated outlets known as Jan Aushadi Kendras which provide generic medicines at affordable rates are encouraged to be set up by individual entrepreneurs.
The Kendras are supplied generic drugs by PMBI. PMBJP’s product basket has nearly 2000 drugs and 300 surgical items. The scheme is implemented by PMBI to ensure access to quality medicines by all sections, especially the poor and to generate employment by engaging individual entrepreneurs in setting up the JAKs.
The quality, safety and efficacy of the medicines through JAKs are ensured by getting each batch of medicines procured from both CPSUs and private suppliers tested in NABL approved laboratories for conforming to the required standards. Over 10,000 JAKs have so far been set up and GoI has ambitious plans to set up another 15,000 JAKs in the next 2 years.