Prime Minister Narendra Modi on Monday announced that all COVID-19 vaccines will be procured by the government of India and given to the States for free.
According to BloombergQuint, this will cost the Centre Rs 45,000 crore, that is over Rs 10,000 crore more than estimated in the union budget, said a government official who preferred to remain unnamed.
Addressing the nation, the PM said, "25 per cent of vaccination work with states will now be handled by the Centre, it will be implemented in the coming two weeks. Both state and centre to work as per new guidelines in the coming two weeks.”
He added from June 21 the free vaccine for people above 18 years will be made available.
Estimated cost of vaccine supply, extended food transfers at Rs 1.75 lakh crore.
— BloombergQuint (@BloombergQuint) June 7, 2021
Read: https://t.co/fGLSD4T6dB pic.twitter.com/0S9QhcMtmO
In a 33-minute TV address to the nation, PM Modi also announced free ration to 80 crore people; the scheme will take off in May and continue till Diwali, i.e. for five more months till November 4. The news report stated this will cost the government Rs 1.3 lakh crore.
Scrapping the policy effective since May 1, which allowed the states to procure 25% per cent of the vaccine stock from the manufacturers, the Prime Minister announced that the Centre would now obtain 75 per cent of the production, including 50 per cent it was already procuring, and supply it to the states for free distribution; it will also inform the states about the supplies weeks beforehand.
For those who can afford to pay, the private hospitals will come into play. These hospitals will acquire the remaining 25 per cent vaccines directly from the manufacturers, with a rider that they will not charge more than Rs 150 per dose as "service charges," the supervision for which will be left up to the state governments, Modi said.
Also Read: Service charge capped at Rs 150 per COVID vaccine dose for private hospital, says PM Narendra Modi
Also Read: COVID-19: Centre to take over vaccination drive completely from June 21, announces PM Narendra Modi
Also Read: Thank you, Supreme Court: Centre announces free COVID-19 vaccination for all adults
source https://www.freepressjournal.in/business/free-vaccination-drive-to-cost-indian-government-rs-45000-crore-report
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