SIDBI & PMBI sign MoU for Credit Assistance to Jan Aushadhi Kendras

NEW DELHI – 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, 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.

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’