Govt launches SIDBI’s collateral-free loans for Jan Aushadi Kendras

Union Minister for Health and Chemicals & Fertilizers, Mansukh Mandaviya on Tuesday launched the Small Industries Development Bank of India (SIDBI) scheme to offer collateral-free loans to small Jan Aushadi Kendra operators, who are selling medicines at susbidised prices across the country. 

Allowing the small medical shop owners easy access funds, for starting new businesses or expand their existing ones, the government aims to strengthen the network of Jan Aushadi Kendras. 

Additionally, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will provide a credit guarantee on these loans, reducing the financial risk for lenders.

The central government has set an ambitious target of having 25,000 Jan Aushadi Kendras operational across the country by March 2026. As of January 2024, over 10,600 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) are already functional.

These outlets have had a positive impact. In 2022-23 alone, the Pharmaceuticals & Medical Devices Bureau of India (PMBI) registered sales of Rs 1,235.95 crore through these stores. This translates to an estimated saving of Rs 7,416 crore for citizens on essential medicines. Over 1,965 generic drugs and 293 surgical items are available at affordable prices at these Jan Aushadi Kendras.

The launch of this new loan scheme is expected to further improve access to affordable medicines for the public and contribute to the expansion of the Jan Aushadi Kendra network. This will ensure that essential medications are readily available at reasonable prices for a wider population.

(With PTI inputs)