Whether Centre's COVID Vaccine Procurement Prices Account For Aid Given To SII, Bharat Biotech? Supreme Court Asks

The Supreme Court has sought from the Central Government the details of public funding and aid given to COVID vaccine manufacturers Bharat Biotech and Serum Institute of India.The Court has also asked whether the current vaccine procurement prices for the Central Government account for the aid provided to the companies. If the vaccine prices account for such grant, on what basis the same benefit has been denied to the State Governments, which also serve the needs of the people, the Court further asked.A bench comprising Justices DY Chandrachud, L Nageswara Rao and S Ravindra Bhat raised these questions in the suo moto case In Re Distribution of Essential Supplies and Services During Pandemic.The bench took note of the submission made by the Central Government that the Finance Ministry has sanctioned a credit of Rs 3000 crores for Covishield manufacturer-Serum Institute of India and Rs 1500 crores to Covaxin manufacturer-Bharat Biotech. Additionally, another Rs 65 crores is stated to have been provided to Bharat Biotech‟s production center at Bangalore. The Central Government also provided the Court with further information on advance funding(of unspecified amounts)that is being provided to R&D and manufacturing facilities. In the light of these public investments, the Court observed that the Central Government should revisit its vaccine pricing policy, which forces State Governments to procure from open market the vaccines for the age group of 18-45 years, competing with private entities.The Court has asked the following questions :(i)Whether, and if so, the Finance Ministry or any other funding organization of the Government of India have made any grants/sanctions to Bharat Biotech and the SII in the past, like the current infusion of Rs 1500 crores and Rs 3000 crores, respectively. If so, breakup and corelation with the total cost of development and production of the two vaccines;(ii)Whether the current procurement prices for the Central Government account for infusion of funds for production, infrastructure and other aid provided by it. If so, the basis on which the same benefit is denied to procurement by State Governments which equally service the needs of citizens; and(iii)The full extent of direct and indirect grant/aid provided for research, development and manufacture of all existing vaccines and future vaccines that it proposes to authorize. For instance, the Central Government has submitted in its affidavit that the Department of Biotechnology has facilitated the trials for Sputnik V.Centre's vaccination policy prima facie detrimental to right to healthThe Court also observed that the the manner in which Centre's current vaccine policy has been framed would prima facie result in a detriment to the right to public health which is an integral element of Article 21 of the Constitution.The Order, which had been reserved by the Apex Court on 30th April, states that there are several aspects of the vaccine pricing policy adopted by the Central Government which need to be revisited. It goes on to note that the end use of the vaccines, whether purchased by the Centre or the remaining 50%, is the same. "The Central Government proposes to purchase half of the total quantity falling within its 50 percent quota while the rest, the manufacturers would declare in advance the price fixed, allowing the State Governments to negotiate their terms." Highlighting that as the manufacturers have suggested two prices, a lower one for the Centre and higher price for the State, the bench observed, "It is likely that compelling the State Governments to negotiate with manufacturers on the ground of promoting competition and making it attractive for new vaccine manufactures will result in a serious detriment to those in the age group of 18 to 44years,who will be vaccinated by the State Governments". "The social strata of this age group also comprises persons who are Bahujans or belong to other underprivileged and marginalized groups, like many in the other population age groups. They may not have the ability to pay". Therefore, the Order notes that the availability of vaccines to these groups will depend upon the decision of each State Government, based on their finances and will therefore create disparity across the nation "The vaccinations being provided to citizens constitute a valuable public good. Discrimination cannot be made between different classes of citizens who are similarly circumstanced on the ground that while the Central Government will carry the burden of providing free vaccines for the 45 years and above population, the State Governments will discharge the responsibility of the 18 to 44 age group on such commercial terms as they may negotiate".Rational method would be for Centre to procure all vaccines It is further noted that...

Whether Centre's COVID Vaccine Procurement Prices Account For Aid Given To SII, Bharat Biotech? Supreme Court Asks

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