India tweaks Jan Aushadhi Kendra rules: What the 500-metre gap means for owners

Subscribe to enjoy similar stories. New Delhi: India has revised rules for opening retail outlets under a government scheme to sell high-quality generic drugs at affordable prices, mandating a minimum distance of 500 meters between stores in major urban areas, according to two officials and a document reviewed by Mint. This decision replaces the guidelines issued in September, and seeks to balance the scheme’s rapid expansion with the financial health of Pradhan Mantri Bharatiya Janaushadhi Kendras.

Officials familiar with the development said that the previous push to reach the ambitious target of 25,000 Kendras by March 2027 led to a “zero-distance" policy. However, this reportedly caused new shops to open too close to existing ones, hurting their earnings. “The department of pharmaceuticals has received various representation from Jan Aushadhi store owers saying that opening new stores closer to the existing ones is hurting their daily sales.

It takes a lot of effort and investment to establish a store (before it begins to pay off). Various states shared their concerns with the secretary (department of pharmaceuticals), leading to the decision," one of the two officials cited earlier said, both of whom spoke on the condition of anonymity. Currently, there are over 17,610 Jan Aushadhi Kendras operational across India.

These stores provide nearly 2,047 high-quality generic medicines and 300 surgical items at prices 50-90% below their branded alternatives. The revision in rules spacing out the stores ensures they remain financially viable while serving the public. Queries sent to the department of pharmaceuticals spokesperson remained unanswered till press time.