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Affordable drugs scheme in crisis: 3 CEOs quit in 3 years, no replacement found since

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BPPI, the bureau that runs the Pradhan Mantri Bharatiya Janaushadhi Pariyojana, has been looking for a CEO since November last year.

New Delhi: The Centre’s flagship programme to deliver affordable medicines to the public, the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), is facing a leadership crisis.

The Bureau of Pharma PSUs of India (BPPI), the implementing agency of the programme, is constantly on the lookout for candidates to fill its chief executive officer position, owing to frequent resignations.

Three CEOs have quit the post since the NDA government decided to revive the UPA-era Jan Aushadhi Yojana, which was ailing and rebranded as the PMBJP. Government sources claimed the CEOs were unable to handle accountability and performance-related stress.

Revolving door

Before December 2013, the BPPI was led by the managing director of the Indian Drugs and Pharmaceuticals Limited (IDPL), a public sector pharmaceutical company. However, during those days, the BPPI did not have more than 80 Jan Aushadhi stores; the number is now pushing 3,200 across the country.

Then, retired IAS officer N. Ram was appointed CEO in December 2013, and served until March 2015. The bureau then appointed Shree Kumar, a former MD of public sector firm HMT Ltd, who had been suspended by HMT in April 2014 for allegedly diverting funds.

Kumar took over as BPPI CEO in July 2015, months before the Centre re-launched the Jan Aushadhi initiative in September, but resigned in June 2016. His colleagues said that he had differences with Hansraj Ahir, the minister of state for chemicals and fertilisers at the time, leading to his exit.

Kumar refused to discuss the issue when reached for comment.

The BPPI took six months to find Kumar’s replacement, and appointed Biplab Chatterjee in 2016. Chatterjee, an industry veteran with over four decades of experience with multinational drug firms, lasted until November 2017, when he resigned citing health and age-related concerns.

Pressures of the job

A person working on the initiative since the UPA days pointed out the problem with these appointments. “The BPPI appointed aged CEOs who were retired officers. Their zest to do new work was limited, as their careers weren’t at stake. However, once the government started banking on this scheme heavily, they were forced to deliver. Quick resignations were the result of that pressure.”

A senior bureaucrat from the ministry of chemicals and fertilisers pointed to another problem. “A salary of about 1.5 lakh per month is not in accordance with the performance metrics of the position,” the bureaucrat said.

The BPPI has been putting out advertisements for the position in national dailies. The CEO is to be appointed on a contract not exceeding three years. S/he needs to have at least 15 to 20 years’ experience in a senior managerial position in supply chain management, or marketing of pharmaceuticals or FMCG products.

The mandate is clear. “CEO will be in-charge and provide leadership to BPPI. CEO is responsible to demonstrate results in the implementation of PMBJP i.e. to make available quality generic medicines and pharma products and services,” states the advertisement.

However, no progress has been made in months.

“Chatterjee has been asked to continue in the position until we find his replacement. We are meeting candidates, but no one looks promising,” said the ministry official.

Chatterjee did not respond to calls and text messages seeking his comment.

‘No vision’

It is not just the BPPI leadership that is in the doldrums. Employees, too, are unclear about their duties and objectives. The internal audit report of the PMBJP by the Office of Chief Controller of Accounts (link here) also pointed out an absence of objectives, guidelines, rules, and regulations.

The report stated ‘it is not known who was performing the functions of the general body’, the body that is supposed to play a vital role in the most important decisions like work plans and framing rules and regulations.

A senior bureaucrat, who was associated with the department of pharmaceuticals, the parent of the BPPI, when the scheme was launched, suggested a radical fix.

“The government is not good at running businesses. We must outsource the scheme to a private body if we want to run it successfully,” this bureaucrat said.

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