The Karnataka government’s decision to phase out Pradhan Mantri Bharatiya Janaushadhi Kendras from state-run hospital campuses has stirred controversy, with critics warning it could disrupt affordable medicine access and hurt pharmacy entrepreneurs operating under the central scheme.

Key Highlights

Government cites free medicine policy as reason

• A recent government order signed by Sripathi PK, Chief Secretary (Health), confirmed:

  1. 31 new applications for Kendras were rejected

  2. Existing licenses will expire at the end of their current term

• Only Kendras outside government hospital premises will be allowed to continue.

State ministers defend the decision

• Health Minister Dinesh Gundu Rao said:

“Karnataka government provides free medicines. There is no need for Janaushadhi inside government hospitals.”

• Principal Secretary Harsh Gupta added that all state hospitals have been directed to procure generics via Karnataka State Medical Supplies Corporation (KSMSC) and supply them free of cost.

Impact on Janaushadhi entrepreneurs

• Ashok, president of the Janaushadhi Kendra Owners' Association, said over 200 centres will be affected.

• Many had taken bank loans and are facing abrupt closures, with some already shut (e.g., Nelamangala), and others given notice until June 1.

Political pushback from opposition

• BJP MPs Tejasvi Surya and Shobha Karandlaje criticized the move as “anti-poor”, claiming it undermines the Union government’s flagship scheme.

• They alleged the closure affects both patients' access to affordable medicines and livelihoods of small entrepreneurs.

State’s alternate strategy

• The government has instructed hospitals to:

  1. Stop directing patients to outside pharmacies

  2. Negotiate pricing with BPPI or procure directly from Bureau of Pharma PSUs of India

  3. Ensure in-hospital supply of free generic medicines.

Karnataka’s move to phase out Janaushadhi Kendras from its hospital campuses has ignited a debate between state autonomy in public health and the impact on central health schemes. While the state emphasizes free in-hospital supply, critics highlight the risks to accessibility and entrepreneurship tied to the PMBJP network.