Read or download the official PDF of this gazette notification issued by the Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals on 11th August 2026. Classified under Press Release.
Executive Summary
This report details government initiatives to ensure the availability of essential medicines and reduce out-of-pocket expenditure through the Free Drugs Service Initiative (FDSI) and the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). It outlines the procurement, monitoring, and quality control frameworks managed by the Ministry of Health and Family Welfare and the Department of Pharmaceuticals. Key measures include a revamped incentive structure for Jan Aushadhi Kendra owners effective September 2024 and the implementation of digitized supply chain monitoring.
Key Points / Main Content
Free Drugs Service Initiative (FDSI)
Operates under the National Health Mission (NHM) to provide financial support to States and Union Territories for free essential medicines.
States receive funding based on requirements outlined in their Programme Implementation Plans (PIPs).
Recommended Essential Medicines Lists (EML) are defined by facility type:
Sub Health Centre Ayushman Arogya Mandir (SHC-AAMs): 113 medicines.
Primary Health Centre Ayushman Arogya Mandirs (PHC-AAMs): 179 medicines.
Community Health Centers (CHCs): 301 medicines.
Sub-District Hospitals: 318 medicines.
District Hospitals (DHs): 381 medicines.
Quality Assurance and Monitoring
All drugs must be sourced from Good Manufacturing Practices (GMP) compliant manufacturers.
Post-supply testing is mandatory for every batch before distribution to health facilities.
The "Drugs & Vaccine Distribution Management System" (DVDMS) and a National Central Dashboard monitor procurement and real-time availability.
Annual Common Review Missions (CRM) are conducted to assess the progress of the FDSI.
Managed by the Pharmaceuticals & Medical Devices Bureau of India (PMBI), featuring a basket of 2,110 medicines and 315 surgical/medical devices.
The supply chain consists of five warehouses and a network of 42 distributors across the country.
Since September 2024, Jan Aushadhi Kendra (JAK) owners receive monthly incentives for stocking 200 commonly used medicines (comprising 100 top-selling and 100 fast-selling items).
PMBI regularly monitors 400 fast-moving products and uses digitized estimation methods to improve the procurement process.
Impact Analysis
PatientsImpact
Reduced Out-of-Pocket Expenditure (OOPE) through the availability of free essential drugs at public facilities and affordable generic medicines at JAKs.
Action Required
Utilize public healthcare facilities or Jan Aushadhi Kendras to access the provided medicine baskets.
Jan Aushadhi Kendra (JAK) OwnersImpact
Eligible for monthly financial incentives based on maintaining specific stock levels of 200 high-demand medicines.
Action Required
Maintain required stock levels of the 100 top-selling and 100 fast-selling medicines and utilize the end-to-end IT-enabled supply chain system.
State and Union Territory GovernmentsImpact
Access to federal financial support for drug procurement and the strengthening of supply chain infrastructure, including warehousing and IT systems.
Action Required
Submit requirements through Programme Implementation Plans (PIPs) and ensure public facilities adhere to the recommended Essential Medicines Lists (EML).
ManufacturersImpact
Procurement is strictly limited to manufacturers who meet robust quality and compliance standards.
Action Required
Maintain Good Manufacturing Practices (GMP) compliance and submit every batch for post-supply testing prior to distribution.
Key Entities Referenced
Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): A flagship scheme aimed at providing quality generic medicines at affordable prices through Jan Aushadhi Kendras (JAKs).
Free Drugs Service Initiative (FDSI): An initiative under the National Health Mission to provide free essential medicines in public health facilities and reduce out-of-pocket expenditure.
National Health Mission (NHM): The primary framework providing financial support to States/UTs for public healthcare services, including the implementation of the FDSI.
Pharmaceuticals & Medical Devices Bureau of India (PMBI): The implementing agency for PMBJP responsible for monitoring medicine availability, demand estimation, and supply chain management.
National List of Essential Medicines (NLEM): The reference policy document used to define the essential medicines product basket and ensure availability across the country.
Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals
Shortages of essential medicines in Government
hospitals and Jan Aushadhi Kendras
प्रव तथ: 11 AUG 2026 3:05PM by PIB Delhi
As per information provided by Ministry of Health and Family Welfare (MoH&FW), to ensure
availability of essential drugs and reduce the Out-of-Pocket Expenditure (OOPE) of the patients visiting
the public health facilities, Government has rolled out the Free Drugs Service Initiative (FDSI) under
National Health Mission (NHM). Under this, financial support is provided to States / Union Territories
for provision of free essential medicines in public health facilities based on the requirements posed by
them in their Programme Implementation Plans (PIPs) within their overall resource envelope.
MoH&FW has recommended facility wise Essential Medicines List (EML) to be made available at the
public healthcare facilities:
i. Sub Health Centre Ayushman Arogya Mandir (SHC-AAMs) - 113
ii. Primary Health Centre Ayushman Arogya Mandirs (PHC-AAMs) - 179
iii. Community Health Centers (CHCs) - 301
iv. Sub-District Hospital - 318
v. District Hospital (DHs) - 381
Support under the scheme is available for procurement of drugs and strengthening /setting up robust
systems of procurement, Quality Assurance, supply chain management and warehousing, prescription
audit, grievance redressal, dissemination of Standard Treatment guidelines and establishment of IT
enabled platform DVDMS (Drugs & Vaccine Distribution Management System) for monitoring the real
status of procurement and availability of essential medicines. To facilitate the monitoring of supply chain
management activity at National level, a Central Dashboard has been developed.
Also, under National Health Mission (NHM), Common Review Missions (CRM) are conducted annually
to assess and monitor the progress and implementation status of various schemes including FDSI.
Quality of drugs procured, under FDSI is ensured through the operational guidelines of the initiative that:-
i. All drugs must be sourced from Good Manufacturing Practices (GMP) compliant
manufacturers through robust procurement mechanism.
ii. Post supply testing of every batch before distributing to the health facilities.
Pharmaceuticals & Medical Devices Bureau of India (PMBI), the implementing agency of the Pradhan
Mantri Bhartiya Janaushadhi Priyojana (PMBJP), continuously monitors the availability of medicines
including essential medicines at Jan Aushadhi Kendras, (JAKs) including those operating in Kerala.
The product basket under the PMBJP has 2,110 medicines and 315 surgicals, medical consumables and
devices, covering all major therapeutic groups, such as cardiovascular, anti-cancer, anti-diabetic, anti-
infectives, anti-allergic and gastro-intestinal medicines and nutraceuticals. Almost all generic medicinesincluded in the National List of Essential Medicines, except lab reagents and vaccines, are part of this
product basket. Continuous monitoring and appropriate corrective measures are undertaken to minimize
stock shortage and ensure availability of essential medicines across the country.
In order to address any supply gaps and ensure smooth supply and availability of products at JAKs, the
following measures are in place:
i. Since September 2024, stocking by JAKs of 200 commonly used medicines, consisting of the
100 top-selling medicines in the scheme product basket and 100 fast-selling medicines in the
market, has been incentivised, under which JAK owners are eligible for monthly incentive
based on the stocks that they maintain for these medicines.
ii. An end-to-end information-technology-enabled supply chain system is in place to connect a
robust supply chain system consisting of five warehouses and a growing network of
distributors across the country, currently numbering 42.
iii. In addition, with a view to ensure availability of commonly used products, 400 fast-moving
products are monitored regularly by Pharmaceuticals and Medical Devices Bureau of India
(PMBI), the scheme implementing agency, and demand for the same is estimated on a
continuous basis. Further, steps have been taken to digitise the estimation method to augment
the procurement process.
This information was given by Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a
written reply in the Rajya Sabha today.
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