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Why experts are not happy with India’s COVID-19 vaccine procurement, pricing policy
The Narendra Modi government’s recent strategy in respect of vaccination against COVID-19 has drawn flak from a section of public healthcare experts as well as economists.
The Union government recently announced two crucial steps: Vaccine makers can sell half their COVID-19-related stock to states and the private sector and vaccination would open up for the 18-45 age group May 1, 2021; but they won’t be sponsored by the Centre, like others have been until now.
Earlier, the central government had agreed to provide emergency use approval for vaccine candidates that have been okayed by the developed countries.
Soon after the Centre’s decision, Serum Institute of India Pvt Ltd priced its Covishield vaccine at Rs 600 a shot for private providers and Rs 400 for states, later scaled down to Rs 300. Bharat Biotech International Ltd has priced a single dose of its Covaxin at a flat Rs 600. Every recipient must take two doses of either vaccine.
Experts slammed the move by the Centre to allow COVID-19 vaccine makers to sell 50 per cent of their stock directly to states and the open market.
More than 20 states, including Kerala, Delhi, Maharashtra, Haryana, Odisha, Jharkhand and Karnataka, have announced free vaccination either for all or particular age groups.
State governments, which have no prior experience in procuring vaccines, will end up spending 27 per cent of their health budget on an average, Anjela Taneja, lead (inequality, health, and education) for charity network Oxfam, told Down To Earth. The figure is based on an estimation done by Oxfam for an upcoming report.
“At least 27 per cent of the state health budget 2021 will go into just getting the vaccination done. How will the procurement of medical oxygen, ventilators, hospitals and medicines happen?” she asked.
Calculations done by different experts suggest that vaccinating the entire population would cost the Union government somewhere between Rs 50,000-70,000 crore. The Union government had allocated Rs 35,000 crore for COVID-19 vaccination in the 2021-22 Budget.
Ratings agency India Ratings and Research Pvt Ltd’s (Ind-Ra) estimates show that vaccinating the entire population may cost Rs 67,190 crore, of which the Union government will incur Rs 20,870 crore and state governments together will incur Rs 46,320 crore. The total is only 0.36 per cent of the gross domestic product, a small amount, given the economic cost of the pandemic. The calculation was based on the assumption of Rs 400 per dose, with five per cent wastage.
Similarly, Indranil Mukhopadhyay, health economist at OP Jindal School of Public and Government Policy, said procuring vaccines for 1.3 billion Indians (Rs 500 per person) would have cost the government roughly Rs 56,000 crore.
“But if the central government is procuring at scale, the cost would be reduced. Then, a Rs 35,000 crore (budget) would also be good enough. If there is a shortfall, the PM CARES fund can be utilised,” he said – DTE
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PM departs Sri Lanka to participate in the 56th World Economic Forum Annual Meeting in Davos-Klosters, Switzerland.
Prime Minister Dr. Harini Amarasuriya departed Sri Lanka on this morning (19 January) to participate in the 56th Annual Meeting of the World Economic Forum (WEF), to be held in Davos-Klosters, Switzerland, from 19 to 23 January 2026.
The World Economic Forum 2026 will be convened under the theme “A Spirit of Dialogue” and will bring together over 3,000 global leaders, including heads of state, government leaders, chief executive officers of leading multinational corporations, policymakers, and technology innovators.
During the visit, the Prime Minister is scheduled to hold a series of high-level bilateral meetings with key international leaders, heads of global institutions, and other distinguished dignitaries.
(Prime Minister’s Media Division)
News
Coal scandal: Govt. urged to release lab report
The government is under mounting pressure to release a foreign laboratory report on the controversial coal consignment imported for the Lakvijaya Power Plant, with the Frontline Socialist Party (FSP) accusing the authorities of political interference and tender manipulation.
Speaking to the media after a party meeting in Homagama yesterday, FSP Education Secretary Pubudu Jagoda demanded an immediate explanation for the delay in disclosing the report from a Dutch laboratory, Cotecna, which was commissioned to test samples of the coal stocks in question after doubts were raised about an earlier local laboratory assessment. Jagoda said Cabinet media spokesperson Dr. Nalinda Jayatissa had announced that the report would be submitted by 16 January, but it had yet to be made public.
“The Sri Lankan lab confirmed the coal was substandard and could damage both the environment and power plant machinery. The foreign lab has independently verified the same results, we are told. Yet, political pressure appears to be delaying the release of the report.” He warned that any attempt to issue a false report would eventually be exposed and urged the government and the laboratory to maintain transparency.
SLPP MP D.V. Chanaka told Parliament last week that while 107 metric tonnes of coal were normally required per hour to generate 300 megawatts, but as many as 120 tonnes of newly imported coal were needed to produce the same amount of power due to its lower calorific value. Tests showed the first two shipments had calorific values of 5,600–5,800 kcal/kg, below the required minimum of 5,900 kcal/kg, said.
Jagoda accused the government of tailoring procurement rules to benefit an Indian supplier, citing a drastic reduction in reserve requirements—from one million metric tonnes in 2021 to just 100,000 tonnes in 2025—and alleged previous irregularities by the company, including a 2016 Auditor General finding regarding a rice supply contract and the 2019 suspension of a key agent of the company by the International Cricket Council over match-fixing.
He further criticised systemic manipulation of the coal tender process, including delays in issuing the tender from the usual February-March window to July, and progressively shortening the submission period from six weeks to three, giving an advantage to suppliers with stock on hand.
The Ministry of Energy recently issued an amended tender for 4.5 million metric tonnes of coal for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender. Jagoda warned that procurement delays and irregularities could trigger coal shortages, higher spot-market purchases, increased electricity costs, and potential power cuts if hydropower falls short.
Jagoda called for urgent investigations into the procurement process, insisting that any mismanagement or corruption should not be passed on to the public.Denying any wrongdoing, the government has said it is waiting for the lab report.
by Saman Indrajith ✍️
News
Greenland dispute has compelled Europe to acknowledge US terrorising world with tariffs – CPSL
The Communist Party of Sri Lanka yesterday (18) alleged that the US was terrorising countries with unfair tariffs to compel them to align with its bigot policies.
CPSL General Secretary Dr. G. Weerasinghe said so responding to The Island query regarding European countries being threatened with fresh tariffs over their opposition to proposed US take-over of autonomous Danish territory Greenland.
US President Donald Trump has declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with effect from 1 February but could later rise to 25% – and would last until a deal was reached. Targeted countries have condemned the US move.
Dr. Weerasinghe pointed out that none of the above-mentioned countries found fault with the US imposing taxes on countries doing trade with Russia and Iran. Now that they, too, had been targeted with similar US tactics, the CP official said, underscoring the pivotal importance of the world taking a stand against Trump’s behaviour.
Referring to the coverage of the Greenland developments, Dr. Weerasinghe said that news agencies quoted UK Prime Minister Keir Starmer as having said that the move was “completely wrong”, while French President Emmanuel Macron called it “unacceptable.
Dr. Weerasinghe said that Sri Lanka, still struggling to cope up with the post-Aragalaya economic crisis was also the target of discriminating US tariff policy. The top CPSL spokesman said that the recent US declaration of an immediate 25% increase in tariff on imports from countries doing business with Iran revealed the prejudiced nature of the US strategy. “Iran is one of our trading partners as well as the US. Threat of US tariffs on smaller countries is nothing but terrorism,” Dr. Weerasinghe said, stressing the urgent need for the issue at hand to be taken up at the UN.
Responding to another query, Dr. Weerasinghe cited the US targeting India over the latter’s trade with Russia as a case in point. He was commenting on the recent reports on India’s Reliance Industries and state-owned refiners sharply cutting crude oil imports from Russia. The CPSL official said that the EU wouldn’t have even bothered to examine the legitimacy of US tariff action if they hadn’t been targeted by the same action.
Perhaps, those who now complain of US threats over the dispute regarding Greenland’s future owed the world an explanation, Dr. Weerasinghe said. The reportage of the abduction of Venezuela’s President and the first lady underscored that the US intervened because it couldn’t bear the Maduro administration doing trade with China and other countries considered hostile to them, Dr. Weerasinghe said.
The CPSL official said that the NPP couldn’t turn a blind eye to what was happening. Just praising the US wouldn’t do Sri Lanka any good, he said, adding that the Greenland development underscored that the US under Trump was not concerned about the well-being of any other country but pursued an utterly one-sided strategy.
The US dealings with the NPP government, particularly the defence MoU should be examined taking into consideration US tariffs imposed on Sri Lanka at the onset of the second Trump administration and ongoing talks with the US, Dr. Weerasinghe.
By Shamindra Ferdinando ✍️
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