In concern with opening of state generic medicines store.

Government of Gujarat

Health and Family welfare Department

Resolution No. : MSP/102016/439/G (Translated from Gujarati)

Secretariat, Gandhinagar.

Consideration taken:

  • Health and Family Welfare Department Resolution no. MSP-102012-58-G dated 20.07.2012. (Translated from Gujarati)

  • Health and Family Welfare Department Resolution No. BGT-102013-NBa (Part File)-G dated 01.07.2013 (Translated from Gujarati)


Good health is given supreme importance in human life. Thus, receiving health services is one of basic human right. For good health lives saving medicines have become most essential. Medicines are as important as food in conditions like diabetes, blood pressure, cancer etc. The people of state have to pay high prices for the medicines in market. Generic medicines are as good as branded medicines in dose, type, safety, capacity, method of giving, quality, effective and in symptoms.

State Government health institutions has formed this scheme for providing free essential medicines and generic medicines at lower rate along with emphasis on prescribing/promoting generic medicines.

It is important to make available generic medicines to common patient generic medicines are as good in quality as branded medicines at cheaper rates as different producers produce same medicines.

Considering this, the idea of providing and distributing high quality generic drugs to people of state was in process by state Government.


It is resolved here by that Gujarat Medical Services Corporation Limited (GMSL) will provide generic medicines at cheaper rates for all people of Gujarat State under this scheme.

Objective of Scheme:

To reduce the cost of health care by providing quality generic medicines at fair prioe without compromise in health care services for common people.


To promote generic drugs approximately 100 generic drug stores will be opened in or near health centers in phase wise manner. These stores will have EDL (Essential Drug List) as well as other Generic Medicines at lower costs. Accordingly in the first phase this scheme will be implemented hospitals with medical college as per annexure-1 with the below conditions. In future as per the experiences other hospitals will be added.

Implementation of Scheme:

To implement this scheme Gujarat Medical Services Corporation Limited (GMSCL) is deputed. The required MOU (Memorandum of Understanding) will be done by GMSCL. Presently the MOU will be signed with HLL and in future the MOU will be extended with other industries of Gujarat and Gujarat CSR Authority (GCSRA) in a Joint Venture. For this purpose GMSCL will invest equity up to Rs. 1.30 crore.

After MOU with operating industries space with token rent will be provided under this scheme. These companies will run Generic Medicines Store as per directives of Government in this space. Government will not be responsible for anything other than issuing of space.

Conditions of this scheme are as under:

  • Essential Drug List (EDL) category medicines will be provided by GMSCL.

  • Non EDL medicines (or in condition of non supply of EDL medicines as per requirement) companies can procure through tender or other method from open market.

  • The medicines not to be sold at more than 12% profit margin after excluding cost of medicines and store management.

  • The space allocated for running of stores will be approximately 1500 sq. ft. in hospitals with medical college and 900 sq. ft. in district hospitals (Token rent for open plot will be Rs. 1 per sq. ft. per month and spaces under construction will be Rs. 10 per sq. ft. per month). In place where built up is not there Government can issue land and built the area speedily.

  • At places where space is not available the stores will be run in rented places and the rent will be paid by respective companies.

  • The respective company will be responsible for all the required approvals and staff allocation.

  • Operating companies will have to manage all the finance for managing and salary.

  • All the process to be undertaken through latest IT systems.

  • Government will provide spaces wherever possible on token rent other than that there will be no responsibility in the stores.

  • Other than medicines and medically important items no other items can be sold.

  • To supervise all the facility the committee is formed as below:

    notification table
  • Other than above mentioned committee GMSCL will form pro mme monitoring committee to review day-to-day facility including members from companies with MOU and Additional Director gllrzdical Education).

  • Operating companies will have to get audits as per rules and submit report to government and GMSCL.

  • Any legal responsibility related to running of stores will solely of operating company.

  • GMSCL is deputed to form any other condition related to MOU.

  • In the first phase this scheme will run for 3 years. According to need the coverage will be expanded.

  • Companies are bind to follow any other instructions by Government of Gujarat.

As per the order and in the name of Honorable Governor, Gujarat.

Sd-(Dilip Thaker)

Deputy Secretary

Health and Family welfare Department.