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To procure & distribute drugs & medical consumables for all Govt. Health institutions. To ensure,
· quality of drugs
· value for money
This Directorate follows the following guidelines.
· Drugs are procured directly from the Manufacturers.
· Manufacturing units having Good Manufacturing Practices (GMP) as per revise schedule “M” are eligible to participate in the Tender.
· Reputed manufacturers having minimum turnover of Rs. 10 Crores or above are eligible to participate in the Tender.

· Drugs are usually procured in generic names.

· The Essential Drug List – 2009 contains 310 items in generic name and 10 Combi-Packs. The Essential Drug List is usually updated in every two years.

· The requirements submitted by the districts & medical colleges are compiled and as per the requirement of the Health institutions procurement is done.

· Around 31 (thirty-one) items are purchased from E.P.M Rate Contract S.S.I Units of the state and rest items including drugs of NRHM are purchased through open Tender / N.C.B (National Competitive Bidding).

· Purchased orders are placed centrally but the supply is made at the districts & medical college level.

· Usually almost all batches of drugs are sent to approved laboratories outside the state for quality testing as an in-house procedure / rechecking.

· 80% of the State Govt. drug budget is allotted to SDMU (O) for procurement of drugs & medical consumables & 20% of the drugs budget goes to the districts & medical college hospitals for transportation of medicines, emergency procurement of drugs & procurement of Lab. reagents & oxygen etc.

(C) DIMS: (Drug Inventory Management System)

All the activities of SDMU (O) are carried out through computers for total error free, transparent strong logical based management. All the 30 districts, 3 medical colleges, Capital Hospital, Bhubaneswar & RGH Rourkela drug warehouses are computerised and are being made online with the SDMU (O) unit. The following activities are carried out through computers .
· Forecasting
· Tender Processing
· Order Processing
· Quality Control
· Expiry drug monitoring / First Expiry First Out (FEFO)
· Bill processing
· Stock monitoring.
The following problems are being faced before introduction of DIMS in our State.
· There was no essential drug list
· No drug quantification
· Overlapping & duplication of drug purchase
· Procurement problem in slow moving drugs
· Procurement problem in small districts
· Wastage due to expiry of drugs
· No quality control measures
· Drugs supplied in Tin & Poly jar packing.
· Requirement based purchase.
· Mostly in generic names.
· Directly from the manufacturers.
· Price is very competitive due to bulk purchase through open Tender system.
· Procurement is strips & bottle packing.
· Introduction of Passbook system.
· Adherence to quality control.
All the above factors have helped to procure good quality drugs at a competitive price.

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