Modi walks back from Covid-19 vaccine policy blunders

In my last article, i wrote about the situation with India's Covid-19 vaccine policy and national vaccination program and how Modi Govt has thrown it into chaos & paralysis. The "Liberalized" vaccine policy announced by the Govt in April was unconstitutional but most importantly it was a highly destructive to our vaccination program.

 

Yesterday, the sun rose from the west, the Earth started spinning in opposite direction and Modi walked back from his policy mistake. On 5 PM, Modi came on national TV and announced critical changes to Govt vaccine policy. The central Govt had earlier put major responsibilities of vaccine procurement on States and made them to bear financial burden. Now Modi is repealing this policy and Central Govt will procure 75% of all national vaccine production on its own finances, and distribute vaccine to states. Earlier, Govt policy was giving free vaccination to 45 years and above age population at central Govt vaccination centers while vaccination of those from 18-44 age was left as responsibility of State Governments. Also 18-44 years age population had the option to get vaccinated at private hospitals but by paying hefty inoculation charges. Now Modi has expanded free vaccination to all 18+ age population at Govt centers.

 

Modi walked back from a bad policy. This is not something that happens everyday. Recall the history of Modi regime, the foolhardy Mohammad Tughlaq policies like Demonetization, unconstitutional policies like CAA and unpopular & regressive new Farm laws introduced last year.  Modi regime brings ill planned, self destructive, foolhardy nonsense policies and ram it through the nation without thinking twice. Even in the face of reality, public protests and unpopularity of policies, Modi never backs down. But what happened today was exceptional when Modi walked back on parts of his vaccine policy.  To be clear, Modi was actually forced to walk back on this due to two main reasons. Firstly, the Supreme Court & various high courts were coming down hard on Modi's arbitrary, mischievous & unconstitutional vaccine policy. Secondly, the vaccine policy was unpopular & destructive politically. With massive humanitarian carnage unleashed by the second wave, Modi regime lost all its popularity & its image sunk into the abyss. The paid vaccination program generated revulsion not just from public, Supreme Court, opposition political parties but even from members of Modi's own ruling party. Elections in India's largest State of Uttar Pradesh are less than a year away and Modi is trying to repair BJP's image to retain its power in UP.

 

To be sure, a lot more needs to be done. The procurement on 75% of vaccine production is not enough. Govt should do two things. The 75% procurement quota should be increased flexibly so that Govt can channel more vaccines for free to the public. The private sector quota of 25% vaccine procurement from companies is unnecessary because most people cannot afford paid vaccines.  But a better thing Govt can do is completely abolish differential pricing. Private hospitals should be sold vaccines by the companies at the same prices as being sold to 75% procurement quota prices of Central Government. The central Government should regulate prices with 150 Rs cap for inoculation charges at private hospitals.  Regarding, the profitability of companies and money they need for capital investment, the solution is simple. SII was already making a small profit when it sold Covishield at Rs 150-200 to central Govt and Bharat Biotech sold Covaxin at Rs 295. The Central Govt should give direct unconditional funding to vaccine companies for capital investment as well as Research & development of new vaccines. This will help in capacity expansion & expanding the pool of vaccines. Of course, with Govt aid to vaccine makers, only condition will be that Govt will negotiate for procurement at minimal prices. Also to make sure that vaccine companies are utilizing Govt grants for right purposes, Govt panel of vaccination (or Covid taskforce) should scrutinize the operations, R&D of vaccine companies. Govt should also authorize compulsory licensing on Covaxin or any domestically developed future vaccine but after following all protocols including making companies to publish their Phase 3 trials data.

Finally, Govt needs to bring more vaccine technology to expand our pool of vaccines. With Astrazeneca & Sputnik V, we have a platform of virus vector vaccines. Covaxin is based on inactivated virus. We also need mRNA vaccines that are very effectively used in North America & Europe. Indian Govt should make bilateral agreements with foreign countries on reasonable & favorable terms to attain vaccine technology for cheap mass production in India. And of course, Govt should continue to demand TRIPS waiver at WTO for open source technology transfers of vaccine technology which will be the best solution to deal with the pandemic.