This decision replaces the guidelines issued in September, and seeks to balance the scheme’s rapid expansion with the financial health of Pradhan Mantri Bharatiya Janaushadhi Kendras.
Officials familiar with the development said that the previous push to reach the ambitious target of 25,000 Kendras by March 2027 led to a “zero-distance" policy. However, this reportedly caused new shops to open too close to existing ones, hurting their earnings.
“The department of pharmaceuticals has received various representation from Jan Aushadhi store owers saying that opening new stores closer to the existing ones is hurting their daily sales. It takes a lot of effort and investment to establish a store (before it begins to pay off). Various states shared their concerns with the secretary (department of pharmaceuticals), leading to the decision," one of the two officials cited earlier said, both of whom spoke on the condition of anonymity.
Currently, there are over 17,610 Jan Aushadhi Kendras operational across India. These stores provide nearly 2,047 high-quality generic medicines and 300 surgical items at prices 50-90% below their branded alternatives. The revision in rules spacing out the stores ensures they remain financially viable while serving the public.
Queries sent to the department of pharmaceuticals spokesperson remained unanswered till press time.
These stores are run under Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)—a public welfare scheme overseen by the Pharmaceuticals & Medical Devices Bureau of India (PMBI) under the department of pharmaceuticals, ministry of chemicals and fertilizers, to provide good-quality generic medicines at affordable prices to people.
PMBI chief executive officer Suvasis Das issued a circular to states and Union territories communicating the change in rules in November.
Emphasizing the strict enforcement of these norms, the official cited earlier, said, “All officers in the states/UTs have been directed to comply with the provisions while operationalizing new Jan Aushadhi Kendras under PMBJP. This is being done to harmonize the economic sustainability of store owners and ensure the availability of generic drugs across the country and keep stores running."
Under the new norms, the 500-metre rule is to be strictly enforced in the seven designated metropolitan cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Ahmedabad, as well as 46 other cities with populations exceeding one million, such as Lucknow, Patna, and Pune. Furthermore, the classification of "million-plus cities" is prepared on the basis of Census 2011, and the same shall be revised and updated according to the latest Census, as and when available.
A close review of 46 million-plus cities reveals the widespread impact of this policy across India's most populous states. For instance, Kerala sees a significant concentration of affected urban centers, including Kannur, Kochi, Kollam, Kozhikode, Malappuram, Thiruvananthapuram, and Thrissur. Similarly, Maharashtra’s urban landscape is heavily represented, with regulations applying to Aurangabad, Nagpur, Nashik, and Vasai-Virar, in addition to the metros.
In Uttar Pradesh, the rule extends to key commercial hubs such as Agra, Allahabad (Prayagraj), Ghaziabad, Kanpur, Meerut, and Varanasi. Other notable cities on the list include Surat, Vadodara, and Rajkot in Gujarat; Dhanbad and Ranchi in Jharkhand; and Ludhiana and Amritsar in Punjab.
For all other towns and rural areas, the required gap between stores is maintained at one kilometre.
A key exception is made for government hospitals and clinics, where these distance rules do not apply, ensuring patients have easy access to medicines.
