According to the senior sources from the Finance Ministry the government has given 100 per cent advance to both the vaccine producers in India — the Serum Institute of India and the Bharat Biotech.
The advances are given so that the two producers get enough funds to continue their production and ramp up the production, said the sources.
The advance given to Serum Institute that produces Covidshiled amounts to ₹ 3,000 crore and for Bharat Biotech that produces Covaxin it is ₹ 1,500 crore.
A week ago, the government also granted ₹ 65 crore Bengaluru’s Bharat Biotech facility which is also helping in tamping up the vaccine production.
This decision of granting advances comes amid the firms facing the lack of funds to ramp up the production, paying staff, purchasing raw materials and also in distribution of doses.
This issue came to light when states started complaining of shortage of vaccines.
Punjab has complained such problem for the second time this morning. Andhra Pradesh on last Friday had said that it has completely run out of vaccine stocks and Maharashtra which had shut around 100 of its Covid Vaccination Centres due to this problem at the start of this month.
With shortage being the forest reason but this financial aid also comes as the Centre has decided to vaccinate all adults above the age of 18 from May 1. This decision to extend vaccination net for all adults comes after a set of meeting held by the Prime Minister Modi during which he said vaccination is the “biggest weapon” to fight against the Covid pandemic.
With various stated complaining about the shortage and shot supplies the centre has also authorised states to directly purchase vaccines doses from the vaccine-makes at a declared price.
The centre has asked the vaccine manufacturers to supply up to 50 per cent of their stock to the states and to keep the remaining for the centre as that stock will be supplied for the centre-run hospitals like AIIMS. The vaccine given at the centre-run hospitals will be free of cost.
India started world’s largest vaccination drive on January 16 with vaccinating only frontline workers and the health workers in the first phase.
The drive will enter it’s third phase from May 1. Over 12.4 crore people have been vaccinated so far.
