Event Overview:
On March 12, 2024, Dr. Mansukh Mandaviya, Union Minister for Chemicals and Fertilizers, launched a new credit assistance program for Jan Aushadhi Kendras (JAKs), managed by the Small Industries Development Bank of India (SIDBI). The launch event took place in New Delhi and included the signing of a Memorandum of Understanding (MoU) between SIDBI and the Pharmaceuticals and Medical Devices Bureau of India (PMBI).
Key Developments:
- Credit Assistance Website: A dedicated website (https://jak-prayaasloans.sidbi.in/home) was launched to facilitate the application and management of credit to JAKs.
- MoU Goals: The SIDBI-PMBI MoU intends to expand and modernize the Jan Aushadhi Kendra network by providing financial support to small and new entrepreneurs who operate these centers.
- Loan Details: Entrepreneurs can avail project loans up to Rs. 2 lakhs at competitive interest rates to establish or enhance JAKs without needing collateral.
Mechanics of the Credit Program:
- Utilization of GST and DPI: The program will use the Goods and Services Tax (GST) network and the Digital Public Infrastructure (DPI) to offer unsecured working capital loans.
- Extensive Coverage: Initially, SIDBI plans to extend the working capital facility to about 11,000 existing and potentially 15,000 new JAKs under a pilot credit scheme.
- Funding Proportions: For project loans, 80% of the project cost will be funded, with the potential to cover up to Rs. 4 lakhs under the second MoU.
SIDBI and PMBI Partnership Details:
- Invoice-Based Financing: Two MoUs have been signed to not only facilitate infrastructure development but also to provide invoice-based financing which aids in smooth financial operations for JAK operators.
- GST-Sahay Technology: This platform will be utilized by SIDBI for fund disbursement, aiming to streamline and expedite the lending process to MSMEs.
Strategic Impact: This initiative is part of a broader government effort to establish 25,000 JAKs by March 31, 2026, significantly enhancing healthcare accessibility across India. As of January 31, 2024, there are 10,624 operational JAKs nationwide, indicating steady progress towards this goal.
About SIDBI:
- Chairman & Managing Director: Sivasubramanian Ramann
- Headquarters: Lucknow, Uttar Pradesh
- Established: April 2, 1990
This program not only supports the financial stability of JAK operators by mitigating the initial capital challenges but also promotes wider access to affordable healthcare through the Jan Aushadhi scheme.
Login with Google