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‘Do not allow profiteering from pandemic’

Legal Correspondent New Delhi | Updated on May 08, 2021

Differential cost for vaccine not founded on any intelligible differentia, WB tells Apex Court

The Centre’s Covid-19 vaccination policy must be underpinned by the principle that “we are as strong as our weakest link” and such a policy must be for the furtherance of a person’s fundamental right to health, the Mamata Banerjee government told the Supreme Court on Friday.

The State said the vaccine pricing policy is “ex-facie detrimental to the interest of the State governments and will result in inequitable distribution of vaccines across the country”, and asked the Centre to explain the rationale behind the differential pricing of vaccines.

Vaccines are sold by the two manufacturers to the Centre at ₹150 a dose while States have to buy them at ₹300 for Covishield and ₹600 for Covaxin.

‘Profiteering from crisis’

“Profiteering at the time of a pandemic is something this Court ought not to countenance… The basis for such a differential cost for each vaccine is not founded on any “intelligible differentia” and is per se manifestly arbitrary and discriminatory,” West Bengal told the Supreme Court in a 218-page affidavit which is part of a suo motu case on Covid-19 management before the Court.

The present outcome of the government’s vaccine policy is that States have to buy them from the open market at higher prices. The cost of vaccinating the 18-45 demographic would have to be either borne by the States or the individual citizens.

“Currently, only 1.54 percent of the Indian population has been fully vaccinated and around 8.4 percent of the population has received one dose. If India wants to cover at least 80 per cent of its eligible population above 18 years of age by the end of this year, then it must increase its vaccination rate by about 100 million doses/month,” West Bengal said.

It said that at the current rate of vaccination, which is about 2.2 million doses a day, only 30 per cent of the eligible population would be vaccinated fully by the end of 2021.

“The immediate singular objective of the Government of India ought to be to take drastic steps to achieve universal coverage at the earliest. Vaccines must be considered as “public good” and should be free of cost… it cannot be reduced to a market commodity,” the State government argued.

“The Government of India under the time-tested Universal Immunisation Programmes (‘UIP’) has provided vaccines to the States for free or subsidised distribution… State Government would like to recommend that the time-tested immunisation programmes in operation for the last 73 years that deliver universal coverage should function as a vaccination model at the time of this pandemic,” Mamata Banerjee government advised the Centre.

Over ₹35,000 crore was allocated in the Budget for vaccination. At ₹150 per dose, it is well within the government’s powers to attain universal coverage.

‘Funding budgeted’

“The Court may also consider directing the Government of India to take immediate steps for compulsorily licensing the vaccines and expand production through the 18 manufacturing companies thereby boosting vaccine availability at an administered price per dose,” West Bengal suggested.

West Bengal said several States are short on funds and the financial hardship has been exacerbated on account of the Centre’s inability to fully compensate the States under the GST regime. “Therefore, going ahead with the existing vaccine policy would result in an inequitable distribution of vaccines across the States and to citizens of India at large thereby defeating the objective of universal coverage,” it said.

Also bigger States would be in a stronger position to negotiate prices. West Bengal said it was the “the legal and moral responsibility” of the Centre to reimburse State governments for the expenses of vaccination incurred.

Published on May 07, 2021

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