In a significant policy shift, the Indian government has revised the operational guidelines for its flagship affordable medicines scheme. The new rules now mandate a minimum distance of 500 meters between two retail outlets, known as Jan Aushadhi Kendras, in major urban areas. This move aims to safeguard the financial health of existing store owners while continuing to expand access to low-cost, high-quality generic drugs for the public.
Addressing Owner Concerns and Ensuring Viability
The decision, communicated to states and Union Territories in November 2025, comes after the Department of Pharmaceuticals received numerous representations from store owners. They reported that the earlier "zero-distance" policy, driven by an ambitious target to open 25,000 Kendras by March 2027, was hurting their daily sales. Officials stated that new stores were opening perilously close to existing ones, undermining the significant effort and investment required to establish a viable outlet.
An anonymous official explained that various states raised these concerns directly with the department's secretary, leading to the revision. The circular enforcing the new norms was issued by Suvasis Das, the Chief Executive Officer of the Pharmaceuticals & Medical Devices Bureau of India (PMBI). The PMBI is the implementing agency for the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), which operates under the Ministry of Chemicals and Fertilizers.
Scope and Exceptions of the New Distance Rule
The 500-meter rule will be strictly enforced in 53 key urban centers. This includes the seven major metropolitan cities—Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Ahmedabad—as well as 46 other cities with a population exceeding one million, as per the 2011 Census. The list of "million-plus cities" will be updated when the latest Census data becomes available.
The policy's impact is widespread across India's most populous states. In Kerala, cities like Kannur, Kochi, and Thiruvananthapuram are affected. Maharashtra sees the rule apply to Aurangabad, Nagpur, and Nashik. Uttar Pradesh's key hubs, including Agra, Prayagraj, Kanpur, and Varanasi, are also covered. Other notable cities under the rule include Surat, Vadodara, Ludhiana, Amritsar, Dhanbad, and Ranchi.
For all other towns and rural areas, the required gap remains wider at one kilometre. A crucial exception has been made for government hospitals and clinics, where these distance norms will not apply. This ensures that patients visiting these facilities have uninterrupted, easy access to affordable medications.
Balancing Expansion with Sustainability
The revision seeks to strike a critical balance between the scheme's rapid expansion and the economic sustainability of its store owners. Currently, over 17,610 Jan Aushadhi Kendras are operational across India. These stores provide a vital service, offering nearly 2,047 generic medicines and 300 surgical items at prices 50% to 90% lower than their branded counterparts.
Officials have directed all state and UT officers to strictly comply with the new provisions while operationalizing new Kendras. The overarching goal is to harmonize the business interests of entrepreneurs running these stores with the public health objective of ensuring nationwide availability of generic drugs. By preventing clustering, the government hopes to keep existing stores running profitably while still expanding the network to achieve its long-term target, ultimately benefiting millions of Indians reliant on affordable healthcare.
