States competing over vaccine in foreign market hurts India’s image: Arvind Kejriwal

NEW DELHI: Chief minister Arvind Kejriwal on Thursday said several states floating global tenders for Covid-19 vaccines was detrimental for India’s image in the world.
In a series of tweets, Kejriwal said that there should be centralised procurement of vaccines. “Indian states left to compete/fight with each other in the international market. UP fighting Maha, Maha fighting Orissa, Orissa fighting Delhi. Where is “India”? Portrays such a bad image of India. India, as one country, shud procure vaccines on behalf of all Indian states (sic),” he tweeted. “Also, when we approach vaccine manufacturers and their countries as “India” rather than individual states, our bargaining power is much more, Indian govt has much more diplomatic space to negotiate with their countries,” he added.
Later in the day, the CM welcomed the statement of Dr VK Paul, member (health), NITI Aayog, wherein he said that the Centre and Covaxin manufacturing company (Bharat Biotech) are willing to invite other companies that want to produce it. Kejriwal tweeted that it is a very welcome step by the central government, which will help in ramping up vaccine production.
Meanwhile, in a video conference with Union health minister Dr Harsh Vardhan, Delhi’s health minister Satyendar Jain requested that the Centre should procure vaccines from foreign manufacturers on behalf of the state governments, instead of states being compelled to individually float global tenders. Jain also urged the Centre to cap the price of vaccines at a uniform Rs 150, alleging that the vaccine manufacturers were making a profit of Rs 16,000 crore on 100 crore doses.
“The two companies preparing the two vaccines, Covishield and Covaxin, must share the formula for preparation of these vaccines to other companies as well,” Jain said, adding that a number of Indian companies are capable of manufacturing it and mobilising it into the market for the public.
“Third point I portrayed in the meeting was that the manufacturers of Covaxin and Covishield have considered this crisis to be an opportunity to generate high profits,” he said. Jain stated that when Covishield was being supplied to the Centre at Rs 150, even then the company was making profit.
“The company is manufacturing six crore vaccines every month. Even if we go by a profit of Rs 10 per dose, and they give half of the vaccines to the Centre, which is 3 crore, the estimated profit comes out to be Rs 30 crore,” he said, adding the same vaccine is being sold to state governments at Rs 300, doubling the profit and at Rs 400 to private entities, even though cost of production stays the same and the profit earned goes up to Rs 260 per dose, considering cost of production is Rs 140.
“By this entire estimation, the company generates a humongous profit of Rs 960 crore in just one month,” he said.
Jain said that the average profit comes to around Rs 160 per dose of vaccine. More than 100 crore Indians are above the age of 18 years and would require at least 200 crore doses. “If we take 100 crore doses from one company and the other 100 crore from another, both of them incur a profit of Rs 16,000 crore each,” he added.
Jain further said that Covaxin was being supplied at an even higher rate and their profit would be higher.