The Business Bytes
TBB BUREAU
NEW DELHI, MAR 12, 2024
In a significant move aimed at bolstering the accessibility of affordable medicines to citizens across India, the Small Industries Development Bank of India (SIDBI) has partnered with the Pharmaceutical & Medical Devices Bureau of India (PMBI) to extend term loans and working capital credit to Jan Aushadhi Kendras (JAKs) established by aspiring entrepreneurs.
Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), JAKs, administered by the PMBI under the Department of Pharmaceuticals, Ministry of Health & Family Welfare, and Chemicals & Fertilizers, play a crucial role in providing generic medicines at affordable prices. With over 10,000 operational JAK stores nationwide and plans to open an additional 15,000 stores in the next two years, the program is poised for significant expansion.
SIDBI’s partnership with PMBI aims to facilitate this expansion by providing tailored financial solutions. Leveraging its GST Sahay application, SIDBI will offer invoice-based working capital to existing JAKs, while its Prayaas platform will provide project term loans for the establishment of new JAK stores.
During the signing ceremony, Union Minister for Health and Family Welfare Dr. Mansukh Mandaviya highlighted the government’s efforts to scale up the JAK program over the past eight years. He underscored the stringent quality assurance processes in place to ensure the availability of high-quality medicines at JAK stores. Dr. Mandaviya commended the collaborative initiative between SIDBI and PMBI, emphasizing its potential to enhance the profitability of JAK stores and create opportunities for young entrepreneurs across the country.
CMD Chairman S. Ramann expressed pride in the institution’s association with the visionary JAK program, emphasizing its benefits for all citizens. He highlighted SIDBI’s commitment to digitalization in credit operations, leveraging the latest digital technology and the country’s Digital Public Infrastructure (DPI) to create a tailored credit program for JAKs.
The partnership between SIDBI and PMBI signifies a crucial step towards enhancing the accessibility of affordable medicines and empowering aspiring entrepreneurs through financial support.
