Govt likely to reduce private sector's 25% Covid-19 vaccine quota

The Centre has indicated that with lower utilisation of Covid vaccines by the private sector, its 25 per cent quota may not be necessary.

Health minister Mansukh Mandaviya told Rajya Sabha, in response to a question by MP Sushil Kumar Modi, that the government took over 7-9 per cent of the private sector’s quota since it had not been utilised.

Vaccine makers, the government has indicated, can provide doses to the private sector according to demand and the remaining would be bought by the government.

If private players do not pick up 25 per cent of the vaccines produced, manufacturers may face financial losses. The prices of Covishield and Covaxin are Rs 600 per dose and Rs 1,200 per dose, respectively, for the private sector. The Centre procures Covishield at Rs 215 per dose and Covaxin at Rs 225 per dose, inclusive of taxes.

The revised guidelines for vaccine management came into effect from June 21. The government would procure 75 per cent of the vaccines being produced in the country and make them available to states for free for all above 18 years of age. The remaining 25 per cent could be directly accessed by the private hospitals.

A source in a vaccine manufacturing firm said that the government has indicated that vaccine makers need not compulsorily hold 25 per cent of their monthly production for the private sector, but continue to supply based on orders placed.

“We usually indicate our production plan to the government in advance, which helps it to plan the procurement and distribution. We will continue to do so. The Centre also knows about a consolidated demand from the private sector, as state governments collate the demand from the private sector and indicate this to the Centre,” said an executive.

The person added that if this demand estimation shows that the demand from the private sector is less than 25 per cent of the total volumes, then vaccine makers will supply private hospitals according to orders placed.

This also implies that the Centre can procure more than the 75 per cent quota that it has allocated for government purchase, if the demand from the private sector is less.

Another executive at a vaccine making company said, “The private sector’s vaccination drive is now spreading beyond metros. Demand would be there. Some hospitals had created a stockpile, and are thus ordering according to their consumption pattern,” the executive said.

At least two leading hospitals said they have not yet heard from either the Centre or vaccine makers about any policy change. “We continue to place orders based on our requirements,” said a senior executive.

Private hospitals also feel that with the Centre deciding to increase the free vaccinations to 75 per cent, the number of people willing to pay for a jab has reduced significantly. “Consequently, the private sector has been able to only vaccinate about 7 per cent of the people in May. Government buying all the remaining doses would lead to faster vaccination of the adult population, and hopefully, lead to minimising effects of the third wave,” said Harsh Mahajan, president, Nathealth, a healthcare body.