How to Open a Janaushadhi Kendra: The Directorate General Resettlement (DGR), Ministry of Defence, in association with the Pharmaceuticals & Medical Devices Bureau of India (PMBI), provides an important self-employment opportunity for eligible Ex-Servicemen (ESM) to establish and operate a Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK).
The initiative combines self-employment for Ex-Servicemen with the wider objective of making quality generic medicines available at affordable prices. Under the PMBJP framework, eligible Ex-Servicemen can also receive a one-time special incentive of up to ₹2 lakh, subject to the applicable conditions and reimbursement requirements.
DGR–PMBJP Initiative for Ex-Servicemen
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) was launched to make quality generic medicines available at affordable prices through dedicated Janaushadhi Kendras. PMBI is the implementing agency for the scheme. According to the current PMBJP website, more than 19,000 Janaushadhi Kendras were functional as of March 2026, with a product basket of around 2,100 medicines and 300 surgical items.
For Ex-Servicemen, DGR has a specific procedure for obtaining an Eligibility Certificate so that the ESM can claim the special incentive from PMBI.
Key benefits at a glance
| Benefit | Details |
| Special incentive for eligible ESM | Up to ₹2 lakh, subject to applicable conditions |
| Retail/operating margin | 20% of MRP excluding taxes under the PMBI opening guidelines |
| Current monthly purchase incentive | 12%, up to ₹12,000 per month, according to the current PMBJP website effective from April 2026 |
| Minimum shop area | 120 sq. ft. |
| Pharmacist | D.Pharm/B.Pharm qualified pharmacist with applicable registration |
| Application | Online through PMBI/Janaushadhi portal |
| ESM verification | DGR Eligibility Certificate required for the ESM special incentive |
The current PMBI opening guideline specifies a 20% operating margin on MRP excluding taxes. Separately, the current PMBJP website states that from April 2026 the monthly purchase incentive is 12%, divided into 6% sales incentive and 6% stock incentive, with an overall ceiling of ₹12,000 per month.
Important: Incentive provisions can be revised by PMBI from time to time. Applicants should therefore check the current PMBI guidelines before making financial commitments.
What is the ₹2 Lakh Special Incentive?
The PMBI guidelines provide a one-time special incentive of ₹2 lakh for eligible categories, including Ex-Servicemen. The guideline specifies the following structure:
- ₹1.50 lakh – reimbursement towards furniture and fixtures
- ₹50,000 – reimbursement towards computer, internet, printer, etc.
- The incentive is applicable against submission of original bills and is restricted to the actual expenditure incurred.
- The special incentive follows a One Family – One Grant principle as specified in the PMBI guidelines.
The DGR’s ESM-specific SOP separately lays down the procedure through which an Ex-Serviceman obtains the DGR Eligibility Certificate and subsequently claims the special incentive from PMBI.
Who Can Open a Janaushadhi Kendra?
The PMBJP scheme permits several categories of applicants, including:
- Individual entrepreneurs/proprietors
- Pharmacists
- Partnerships
- Trusts and societies
- Charitable institutions/hospitals
- NGOs and other eligible organizations
- Government or government-nominated agencies
For an individual applicant, the PMBI guideline requires the applicant to hold a D.Pharm/B.Pharm qualification or employ a D.Pharm/B.Pharm qualified person and provide the required proof.
For an Ex-Serviceman seeking the DGR special incentive, however, additional DGR eligibility conditions apply.
DGR Eligibility Conditions for Ex-Servicemen
According to the DGR Standard Operating Procedure for incorporation of Ex-Servicemen into PMBJP, the ESM applicant must satisfy the following conditions:
1. No previous DGR welfare benefit
The ESM should not have availed another benefit from DGR or been registered under another DGR scheme earlier.
2. Government/Semi-Government employment condition
The DGR SOP states that the ESM should not be employed with a Government or Semi-Government organisation. If employed, the applicant has to quit the job within 30 days of allotment of the PMBJK.
3. PMBI eligibility must also be satisfied
Being an Ex-Serviceman alone does not automatically guarantee allotment of a Janaushadhi Kendra. The applicant must also satisfy the applicable PMBI requirements, including premises, pharmacist and other statutory requirements.
Basic Requirements for Opening Janaushadhi Kendra
1. Minimum 120 sq. ft. premises
The applicant must arrange suitable own or hired premises of at least 120 sq. ft. supported by an ownership document, proper lease agreement or space allotment letter. PMBI does not arrange the premises for the applicant.
2. Pharmacist
The applicant must secure a pharmacist and provide the pharmacist’s name and registration details with the appropriate State Council. A D.Pharm/B.Pharm-qualified person is required under the PMBI guidelines.
3. Drug licence
The applicant is responsible for obtaining the required drug licence in the name of Pradhan Mantri Bhartiya Janaushadhi Kendra and complying with applicable statutory requirements relating to the storage and sale of medicines.
4. Financial capacity
Applicants are required to demonstrate financial capacity through documents such as ITRs and bank statements. The current guideline lists ITR for the last two years and bank statements for the last six months among the documents to be submitted.
5. Aadhaar and PAN
For an individual/proprietor, Aadhaar and PAN-related documentation is required. The PMBI guideline specifically states that an individual/proprietor application without Aadhaar will be rejected.
Distance Requirement for Janaushadhi Kendra
The current PMBI opening guideline specifies a minimum 1 km distance between two Kendras while approving a new Kendra across districts.
There is, however, an important exception: the guideline states that the distance restriction does not apply within 500 metres surrounding District Government Hospitals and Private Hospitals having 100 or more beds, or hospitals attached/associated with Medical Colleges. PMBI determines the final location and number of Kendras after examining viability and conducting the applicable market assessment.
Therefore, an applicant should check the proposed location carefully before spending money on premises or infrastructure.
Documents Required for PMBJK Application
The PMBI guideline lists documents including:
- Aadhaar Card
- PAN Card
- Pharmacist Registration Certificate
- ITR for the last two years
- Bank statement for the last six months
- Undertaking regarding distance policy
- Declaration regarding GST registration when the applicable threshold is reached
- Category proof/undertaking for Ex-Serviceman special incentive
- Premises/lease-related documents
- Other documents applicable to the applicant category
For an ESM applying for the special incentive, proof of Ex-Serviceman status is particularly important.
DGR Documents Required for the Special Incentive
The DGR SOP specifies the following documents for obtaining the DGR Eligibility Certificate, duly attested by the Zila Sainik Board (ZSB) where applicable:
- Application in the prescribed format
- Initial PPO and corrigendum, if applicable
- Gratuity order/EPPO, as applicable
- Ex-Servicemen Identity Card
- Discharge Book/Retirement/Release Order
- Affidavit in the prescribed format
- Aadhaar Card
- Two passport-size photographs
- PMBJK Allotment Letter received from PMBI
The DGR document specifically states that the applicant should submit the PMBJK allotment letter before applying to DGR for the Eligibility Certificate.
Step-by-Step: How an Ex-Serviceman Can Open a Janaushadhi Kendra
This is the most important part for ESM applicants.
Step 1 – Check your DGR eligibility
Before proceeding, verify that you satisfy the DGR conditions, particularly the restrictions concerning previous DGR benefits and Government/Semi-Government employment.
Step 2 – Arrange a suitable location
Identify a commercially viable location meeting PMBI’s applicable distance and premises requirements.
The minimum premises requirement is 120 sq. ft.
Step 3 – Arrange a qualified pharmacist
The applicant must have access to a suitably qualified and registered D.Pharm/B.Pharm pharmacist as required by PMBI and applicable drug laws.
Step 4 – Apply online to PMBI
The PMBI application is made online through the official Janaushadhi website.
Official application portal:
Apply for Janaushadhi Kendra – PMBI
The official PMBI application page provides registration and the “How To Open Janaushadhi Kendra” resources, including the guidelines, agreement and special-incentive procedure.
Step 5 – Select Ex-Serviceman category
While submitting the PMBI application, the applicant should correctly select the Ex-Serviceman category for claiming the applicable special benefit.
PMBI states that the category should be selected in the application itself and that it cannot subsequently be changed for the purpose of the category benefit.
Step 6 – Obtain PMBI allotment
PMBI examines the application and proposed location. If the application meets the applicable conditions, the Kendra can proceed towards allotment/approval.
Step 7 – Apply to DGR for Eligibility Certificate
After receiving confirmation/allotment of the PMBJK from PMBI, the eligible ESM applicant has to submit a separate application to DGR for the Eligibility Certificate required for the special incentive.
Step 8 – DGR verification
The DGR SE Branch scrutinises the application and supporting documents. It also conducts the required internal screening concerning previous DGR welfare benefits.
After clearance, DGR issues an Eligibility Certificate with a unique registration number.
Step 9 – Submit the Eligibility Certificate to PMBI
After receiving the DGR Eligibility Certificate, the applicant forwards the original certificate to PMBI along with the special incentive claim.
The DGR SOP states that PMBI releases the special incentive after receiving the original DGR Eligibility Certificate.
Step 10 – Complete the Kendra setup
After approval, the entrepreneur must complete the required infrastructure, pharmacist arrangement, drug licence and other statutory requirements before commencing operations.
What Are the Earnings from a Janaushadhi Kendra?
There are different components that an applicant should understand.
1. 20% retail/operating margin
The PMBI guideline provides an operating margin of 20% on the MRP excluding taxes for each drug. The PMBI agreement also states that the current applicable retail margin is 20%.
This should not be confused with net profit. Rent, pharmacist salary, electricity, staff costs, taxes, working capital, compliance and other business expenses have to be considered separately.
2. Monthly purchase incentive
There has been a change in the incentive structure.
The current PMBJP website states that effective April 2026, a monthly purchase incentive of 12%, capped at ₹12,000 per month, is applicable. It is divided into:
- 6% Sales Incentive – maximum ₹6,000
- 6% Stock Incentive – maximum ₹6,000
The applicable conditions should be checked before calculating expected earnings.
Some older PMBI documents continue to display earlier incentive provisions, including a 20% purchase incentive structure. Therefore, applicants should rely on the latest PMBI circular/guideline applicable at the time of application, rather than calculating income from an older document.
Is the ₹2 Lakh Incentive Paid in Cash?
The ₹2 lakh special incentive should not be treated as an unrestricted cash grant.
The PMBI guideline describes it as a one-time reimbursement, with:
- ₹1.50 lakh for furniture and fixtures
- ₹50,000 for computer, internet, printer and related items
It is against original bills and limited to actual eligible expenditure.
Therefore, an ESM should maintain proper bills, invoices and supporting documents for eligible expenditure.
PMBJP: Affordable Medicines and Public Service
The Janaushadhi initiative is not simply a retail business opportunity. It also aims to make medicines more affordable.
According to PMBJP, Janaushadhi medicines are generally priced substantially below comparable branded medicines, and medicines supplied through the programme undergo quality testing arrangements.
For an Ex-Serviceman, establishing a Kendra can therefore combine entrepreneurship, livelihood generation and community service.
Why This Opportunity Matters for Ex-Servicemen
After retirement from the Armed Forces, many veterans look for a business that can provide:
- Self-employment
- A structured business model
- Opportunity to work within their local community
- Scope for family participation
- A socially useful service
- Access to a government-supported initiative
The DGR–PMBJP initiative provides a specific route for eligible ESM to participate in the Janaushadhi programme while accessing the applicable special incentive.
Important Points ESM Applicants Should Check
Before applying, an Ex-Serviceman should carefully verify:
✔ DGR eligibility
Check whether any previous DGR scheme benefit affects eligibility.
✔ Employment status
The DGR SOP contains specific conditions regarding Government/Semi-Government employment.
✔ Location availability
Check the distance requirement and availability/viability of the proposed location before taking a long-term lease.
✔ Pharmacist availability
Arrange a qualified and registered pharmacist.
✔ Drug licence
Understand the applicable State drug-control requirements before commencing operations.
✔ Working capital
The ₹2 lakh special incentive should not be considered the entire capital requirement. The applicant must maintain sufficient funds for stock and day-to-day operations. PMBI’s guidelines specifically require applicants to arrange sufficient funds for smooth functioning.
✔ Latest incentive rules
Check the latest PMBI information because incentive structures may be revised.
Official Websites for Application and Verification
PMBI / Janaushadhi official website:
janaushadhi.gov.in
Online application for opening a Kendra:
Apply for Kendra
DGR official website:
Directorate General Resettlement (DGR)
The PMBI application page currently provides the latest “How To Open Janaushadhi Kendra” resources and the relevant guidelines, agreements and special-incentive documents.
Frequently Asked Questions
Can an Ex-Serviceman open a Janaushadhi Kendra?
Yes. Ex-Servicemen are specifically included among the categories eligible for the applicable special incentive, provided the applicant meets the PMBI and DGR conditions.
How much special incentive is available to an eligible ESM?
The applicable special incentive is up to ₹2 lakh, subject to the prescribed conditions, eligible expenditure and submission of supporting bills/documents.
Is a pharmacist compulsory?
A qualified D.Pharm/B.Pharm pharmacist is required under the PMBI eligibility framework, either through the individual applicant’s qualification or by employing a qualified pharmacist.
What is the minimum shop area?
The PMBI guideline specifies 120 sq. ft. minimum premises.
Where does an ESM first apply?
The process starts with the PMBI/Janaushadhi online application. After PMBI allotment, the eligible ESM applies separately to DGR for the Eligibility Certificate needed for the special incentive.
Is the DGR Eligibility Certificate the same as PMBI approval?
No. They serve different purposes. PMBI handles the Janaushadhi Kendra application/allotment, while DGR issues the Eligibility Certificate to validate the ESM’s eligibility for claiming the special incentive.
Final Takeaway for Ex-Servicemen
The DGR–PMBJP Janaushadhi Kendra initiative provides eligible Ex-Servicemen with an opportunity to establish a medicine retail outlet while contributing to the availability of affordable medicines in their communities.
The major components include up to ₹2 lakh one-time special incentive, a 20% retail/operating margin on MRP excluding taxes, and the current 12% monthly purchase incentive up to ₹12,000, subject to the latest PMBI rules and conditions.
The process can broadly be remembered as:
Check ESM eligibility → Select suitable location → Arrange pharmacist → Apply on PMBI portal → Obtain PMBJK allotment → Apply to DGR → Receive DGR Eligibility Certificate → Submit certificate to PMBI → Claim applicable special incentive → Complete Kendra setup.
For veterans considering self-employment after service, this is an opportunity worth examining carefully with the latest official DGR and PMBI guidelines, particularly before investing in premises, furniture, equipment or initial stock.