Chemicals and Fertiliser Minister Ram Vilas Paswan promises a new policy for the poor that will ensure them free medicines, health insurance and subsidised treatment for// tuberculosis, AIDS and cancer.

"By Jan 1 we hope to have drug banks operational at district headquarters that will offer free medication to the poor," Paswan said in an interview here.

"The banks will be stocked with the help of the drug manufacturers who have agreed to provide 0.5 percent of their annual turnover for this effort," Paswan told IANS.

As per ministry estimates, drugs worth Rs.450 million are to be contributed annually towards this effort by small and medium-sized enterprises in the pharma industry, which has a turnover over Rs.90 billion.

"We are also studying the launching of a health insurance programme soon for below the poverty line (BPL) families," said Paswan.

Free medication and health insurance cover for the BPL (below poverty line) population, estimated at 300 million are expected to be part of the new policy.

"The 14-member committee formulating the new policy is studying including the health insurance cover. The final report is expected by month-end and we will go to the cabinet in November to seek approval," Paswan said.

A Supreme Court directive on controlling prices of essential drugs had initially set the ball rolling on making medical and healthcare affordable. The committee appointed by the ministry is studying various ways to achieve this.

As part of the promises made in the United Progressive Alliance's common minimum programme to provide drugs at reasonable prices to the common man, the ministry favours adoption of some of the recommendations of two earlier committees.

It is considering capping the cost of branded drugs at the average of prices charged by some top producers to protect both consumers and research and development activities. A final decision
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