Tamil Nadu CM urges Centre to rethink vaccine policy, terms differential pricing 'unfair'

In a letter addressed to PM Modi, Tamil Nadu CM E Palaniswami disapproved of the disparity in COVISHIELD and COVAXIN sale prices for the Centre and State governments. While the Centre's procurement price for both COVISHIELD and COVAXIN remains at Rs. 150 per dose, States will have to purchase them at a higher cost. For instance, COVISHIELD and COVAXIN will be sold to the state governments at Rs. 400 and Rs. 600 per dose respectively. According to him, such a differential price mechanism is "inherently unfair" as it places a higher financial burden on States. 

The AIADMK leader requested the Union government to procure and supply the entire quantity of vaccines for administering all age groups. Moreover, Palaniswami called upon the Centre to explore alternate sources of vaccine supply including possible imports. At present, there are 1,05,180 active novel coronavirus cases in Tamil Nadu while 9,63,251 patients have been discharged and 13,557 deaths have been reported. While a total of 44,37,369 persons have been inoculated in the State so far, 10,39,738 of them have received the second dose of the vaccine too.

The TN CM noted, "It is also iniquitous since the State governments have considerably less fiscal resources at their demand than the Central government. Further, since budgetary provision of Rs.35,000 crore has been made in the Budget Estimates for 2021-22 for the COVID-19 vaccination programme, states have a legitimate expectation that the government of India would supply the COVID-19 in phase 3. In these circumstances, I request the government of India to kindly procure and supply the entire required quantity of vaccine for administering all groups including those in the age group of 18-45." 

Centre presses for a reduction in vaccine price

Earlier in the day, sources revealed that the Centre has asked the Serum Institute of India and the Bharat Biotech to lower the price of their COVID-19 vaccines. This assumes significance ahead of the new phase of inoculation beginning May 1 whereby all persons aged above 18 will be eligible for novel coronavirus vaccination. Several opposition parties such as Congress had demanded the same pricing for state governments and the Centre. As per sources, the issue of vaccine pricing was discussed at a meeting chaired by Cabinet Secretary Rajiv Gauba. It is likely that the two companies will come up with revised pricing for their vaccines.