Procurement of Medicines Under CGHS

Ministry of Health and Family Welfare22-March, 2013

Conventional budgeting system is adopted for anticipating demand and planning procurement of medicines and stores for different systems of medicine under CGHS. Demand is ascertained on the basis of past experience of consumption of different medicines and source of supply is selected as per predetermined policy which inter alia includes direct procurement from manufacturers through a tender process. Proprietary medicines are procured from manufacturer /suppliers under rate contracts. Allopathic medicines are procured through Medical Stores Organization (MSO) and Medical Stores Depot (MSD), CGHS. Medicines are also procured through Authorized Local Chemists in case of non-availability of prescribed medicines in CGHS stores. 

For procurement of medicines under other systems of medicines similar system is followed. However, bulk purchases of Ayurvedic and Unani medicines are made from Indian Medicines Pharmaceutical Corporation Limited (IMPCL), a wholly owned Government of India undertaking under the Department of AYUSH, at the rates determined by the Department of Expenditure. Homeopathic medicines are also procured through tender process and Local Chemists. 

IMPCL supplies Ayurvedic, Unani Medicines to CGHS as per orders placed with them. The demand for Ayurvedic and Unani medicines are increasing day by day, and accordingly, the Government approved the capacity expansion and modernization project of IMPCL in 2010-11 and released share capital of Rs. 34 Crore. 

This information was given by the Minister of Health & Family Welfare, ShriGhulamNabi Azad,in written reply to a question in the LokSabha today.