Jan Aushadhi Programme Procurement

The Jan Aushadhi Programme, officially Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), is a central government scheme under the Bureau of Pharma PSUs of India (BPPI) that procures quality-certified generic medicines from WHO-GMP manufacturers and supplies them to over 14,000 Jan Aushadhi Kendras (retail pharmacy stores) at prices 50-90% below branded MRP.

What is the Jan Aushadhi Programme?

PMBJP was relaunched in 2015-16 with a mandate to make quality generic medicines accessible to the common person. BPPI, a society under the Department of Pharmaceuticals (Ministry of Chemicals and Fertilizers), acts as the central procurement and distribution agency.

From a procurement perspective, BPPI:

• Maintains an approved product list (currently 2,047 medicines and 300+ surgical consumables and nutraceuticals)
• Issues rate contract tenders to WHO-GMP certified pharmaceutical manufacturers for each product category
• Evaluates on L1 basis after technical qualification (WHO-GMP, valid manufacturing licence, IP/BP/USP compliance, CDSCO approval)
• Awards supply contracts with quarterly indenting cycles
• Maintains central warehouses at Gurugram, Chennai, and other locations for national distribution

Jan Aushadhi also procures surgical consumables (dressings, cannulas, sutures) and nutraceuticals through similar rate contract mechanisms, giving manufacturers across healthcare segments access to the scheme.

BPPI pays manufacturers within 45 days of supply acceptance. Manufacturers list their products on BPPI's portal once rate contracts are established.

Why Jan Aushadhi Programme matters for Indian government suppliers

BPPI's Jan Aushadhi rate contracts provide pharmaceutical manufacturers with guaranteed large-volume offtake across 14,000+ outlets nationwide. The scheme is growing rapidly, target of 25,000 Jan Aushadhi Kendras by 2025-26, with supply contracts increasing proportionately. Manufacturers participating in the scheme also benefit from brand recognition as quality generic producers.

Example

A pharmaceutical company manufacturing Metformin 500 mg tablets applies to BPPI's rate contract tender. It qualifies with WHO-GMP certificate, valid Form 25 manufacturing licence, IP 2022 compliance certificate, and annual production capacity of 100 million tablets. Winning the rate contract at Rs 0.85 per tablet, it supplies 5 crore tablets annually to BPPI's distribution network, generating Rs 4.25 crore in revenue through the scheme.

Frequently Asked Questions

What quality requirements must manufacturers meet for Jan Aushadhi supply?

Manufacturers must hold WHO-GMP certification, valid Drug Manufacturing Licence, IP/BP/USP compliance for the specific formulation, and CDSCO approval where required. BPPI also conducts periodic audits of manufacturing facilities of empanelled suppliers and can delist suppliers failing quality standards.

Can small pharmaceutical manufacturers supply to Jan Aushadhi?

Yes. The scheme is specifically designed to leverage India's large generic manufacturing base, including MSMEs. Minimum turnover requirements are relatively low. WHO-GMP certification is mandatory but accessible to well-run small manufacturers. The scheme has been a revenue enabler for many smaller generic companies.

How are Jan Aushadhi medicines priced?

BPPI fixes prices significantly below MRP of equivalent branded products, typically at NPPA ceiling price or below. Manufacturer prices are set through competitive L1 tendering. The Kendra operator earns a 20% margin on the BPPI price. Consumer prices remain capped at BPPI-published prices.

Does BPPI accept products not in the Indian Pharmacopoeia?

BPPI's approved product list focuses on essential medicines with IP/BP/USP monographs. For newer formulations without pharmacopoeial monographs, CDSCO approval and BPPI's own technical committee approval are required. The approved product list is updated annually to include new medicines.