According to an an official spokesman, a meeting of the state Cabinet here chaired by Chief Minister Omar Abdullah okayed "the establishment of Jammu and Kashmir Medical Supplies Corporation (JKMSC) for purchasing drugs, instruments and disposables and other equipment required in health care institutions".
The Cabinet had approved creation of 22 posts under different categories for the new corporation, he said.
The corporation will achieve the objective of economising on purchases, facilitate procurement of quality and standard drugs and put in place a foolproof drug testing mechanism, the spokesman said.
A probe is on in that scam with calls by activists for registration of a case against the then state health minister Sham Lal Sharma and members of a purchasing committee for allegedly procuring the fake drugs for government hospitals.