Senior Congress leader P. Chidambaram has accused the government of helping the two vaccine manufacturers to commercially exploit the COVID-19 pandemic by quoting high rates for vaccines.
The senior Congress leader wrote on Twitter, “The government’s ineptitude has been called by the two vaccine manufacturers who have now put five prices on the tanks for similar vaccines and the government is silent!”
Bharat Biotech that manufactures the Covaxin has said that it will supply the vaccine at ₹150 per dose to the Central government, ₹600 per dose to State governments and ₹1,200 to private hospitals. There is confusion regarding the price of Serum Institute’s Covishield vaccine. The Serum Institute says it will provide the doses for ₹400 to both the Centre and the State and at ₹600 to private hospitals. The ₹150 price per dose for the Union government was for the first 100 million doses as per the earlier contract, it said. Health Minister Harsh Vardhan, meanwhile, has maintained that the Centre will be purchasing both the vaccines at ₹150.
Congress General Secretary (Communications) Randeep Surjewala, at a separate press conference, claimed that if the vaccines are sold at the present rate, the two firms will make a profit of ₹1,11,100 crore. The calculations are based on the fact that India’s population below 45 years is 74.35% of the total population which comes close to 101 crore. To vaccinate these 101 crore, 202 crore doses are needed. The cost of these will have to be borne by the States or the individuals themselves. “Based on this and assuming that States will provide 50% of the vaccination and individuals will bear 50% of the vaccination cost, the profit of the two vaccine manufacturers will be ₹1,11,100 crore,” Mr. Surjewala said. “How can such brazen vaccine profiteering be permitted,” he asked.
Also read: Serum Institute defends Covid-19 vaccine pricing
Mr. Chidambaram said the government should call the bluff of both Bharat Biotech and Serum Institute.
“The way to do it is to invoke compulsory licensing and invite price bids from other pharma manufacturers that will include royalty payable to SII and Bharat Biotech. L1, L2 (lowest bidders) etc will reveal the true cost of manufacturing of the two vaccines including a reasonable profit,” he said.
Demands response
Demanding a response from the Health Ministry, Mr. Chidambaram accused the Union government of supporting ‘profiteering” by the two manufacturers in the time of pandemic. He tweeted, “there is a body of opinion that holds that even at ₹150 per dose, the two current manufacturers will make a small profit. If true, at ₹400-1000, it will be profiteering. Perhaps that is what the government wants. Will the Ministry of Health please respond?”
