New vaccine policy to cost 50k Cr; Centre releases revised guidelines, says vax wastage to affect allocation

Modi government's new vaccine policy will cost around Rs 50,000 crore, Finance Ministry sources said as per NDTV.

This development comes after Prime Minister Modi had announced that the Centre is taking back vaccine-buying from states. Finance Ministry also said that the government has the money.

According to the report, "We don't need to go for the supplementary grants immediately as there are enough funds. We may have to go for this in the second round, near the winter session of Parliament. At present we have the money," Finance Ministry sources said.

On Monday, Prime Minister Narendra Modi announced that all Indians above 18 years of age will be administered free COVID-19 vaccine from June 21.

Addressing the nation, the Prime Minister made it clear that the states will be provided these vaccine doses free of cost from Central government. "The government of India will provide free vaccine to the states from Monday, June 21, in every state for all citizens above the age of 18 years," Modi said.

"The task of monitoring it will remain with the state governments," the Prime Minister added. "No state government of the country will have to spend anything on the vaccine," Modi further announced. Till now, the Prime Minister said, crores of people of the country have got free vaccine. "Now people of 18 years of age will also join it," he said. "Only the Government of India will provide free vaccine to all the countrymen," the Prime Minister reiterated.

The NDTV report quoted the finance Ministry sources as saying that the government is no longer depending on foreign vaccines to meet its vaccine needs.

"Our programme of procurement is centred around Bharat Biotech, Serum Institute and the new Bio-E; we will be able to supply vaccines for the substantial population from these vaccines," sources said.

Meanwhile, talks with Pfizer and Moderna are reportedly stuck on the indemnity bond demand by the vaccine makers and their insistence that disputes in India related to their vaccines be taken up in US courts only.

"At present Moderna has no plan to enter till January next year," said Finance Ministry sources.

The Centre in its new guidelines for vaccination said the COVID-19 vaccines provided free of cost will be allocated to the states and Union Territories on the basis of criteria like population, disease burden and the progress of vaccination.

The Central government said that it will procure 75% of vaccines produced in India and distribute it among states. But the guidelines underline that wastage of vaccines will negatively affect vaccine allocation to the states.

According to the guidelines 25% of the vaccines could be bought by the private hospitals and can be used in vaccinating those who are willing to pay for the vaccine.

The manufacturer will declare the price at which hospitals can buy the vaccines, as per the new guidelines.