Invoke compulsory licensing to lower vaccine price: Chidambaram

Chennai: Several chief ministers and Opposition leaders have raised a red flag over the different pricing of vaccines and have asked for uniform pricing for all.

Bharat Biotech had announced its Covaxin will cost Rs 600 for state governments and Rs 1,200 for private hospitals and Serum Institute of India (SII), said its Covishield developed by Oxford-AstraZeneca at Rs 400 a jab to states and Rs 600 to private hospitals.

In order to know the legal and other options, ETV Bharat spoke to veteran Congress leader and former Finance Minister P. Chidambaram.

Question: How can the centre apply uniform pricing for the coronavirus vaccine. What legal options does the centre have?

P. Chidambaram: As this is a case of a national health emergency, the two vaccines will play a critical role in saving the lives of lakhs of people. Therefore, the vaccine manufacturer cannot sell the vaccine at two different prices. This is not like shoes or clothes which can be sold at two different prices. To make the pricing uniform, the government should invoke compulsory licensing. If more players come to manufacture, the pricing will automatically go down. Obviously, both vaccine manufacturer will get a royalty. The government can also cite the Doha declaration which expresses better access to essential medicines.

Question: Vaccine manufacturers say the pricing will help them in scaling up the production. How do you see their statement?

P. Chidambaram: This is nothing to do with the pricing of the vaccine. If they need funds to boost up their vaccine manufacturing, they should have appealed to the centre. If Congress would be in power, we would have been sanctioned the amount immediately. If they scale up the price, it will ultimately impact the citizens.

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Question: Some of the Left parties suggested manufacturing vaccine at the Public Sector Undertakings (PSU) as they have a good infrastructure. Do you agree with their advice?

P. Chidambaram: The capacity to manufacture vaccine does not mean they have the technology to manufacture a coronavirus vaccine. This is a patent product. It takes huge research to manufacture a vaccine. So, how can a PSU manufacture a Covid vaccine without having a license? The only way out is to invoke compulsory licensing.

Question: The government has said it wants to vaccinate everyone above 18 years of age at government hospitals. However, private hospitals will charge Rs 600 for that. Many states demanded a universal vaccination program to curb the virus spread. How do you see this?

P. Chidambaram: The central government and the state government are totally dependent on the taxes being collected. So, if the state government would pay the bill for the vaccine, it means the people of that state are paying the amount. Suppose, a family of 4-5 people. It would cost around 9,000-10,000 for a family to get both doses of the vaccine. So, why should they pay such a hefty amount? Earlier, Chief Executive Officer of the Serum Institute of India, Adar Poonawalla had said that they would make a profit if the vaccine is sold at Rs 150. So, ask them to fix it at Rs 200-250.

Question: Some epidemiologists have said that free vaccination would affect the government's exchequer and ultimately on the economy. How do you see that?

P. Chidambaram: Those epidemiologists and economists are wrong. Epidemiologists can only speak of the vaccination method, not about the economy. So, I don't think we should consider the epidemiologists' concern over the economy. The state governments are taking taxes from their people. The money does not come from heaven. If the state government pays, it means it impacts the people of that state. I know it will take some money from the Central Vista project, Mumbai- Ahmedabad bullet train project. The government should stop those projects which are not necessary. The government has already sanctioned Rs 35,000 crore for the vaccine. If the price of the vaccine would cap at Rs 200-250, the arithmetic suggests it would vaccinate almost 70-75 million of the population.

Question: As a former minister, how do you see the Narendra Modi led-government in dealing with the second wave of the pandemic. What went wrong ?

P. Chidambaram: Everything went wrong. The day Mr Modi declared the country has conquered this pandemic. There is no Prime Minister and President in the world who has made such claims. How does Mr Modi know that we would not have the second or the third wave? One of the ministers said, "Mr Modi has defeated coronavirus". I want to tell them just go through what the international media such as The Guardian, New York Times, The Economist and the Australian are saying about the handling of the pandemic. The world is feeling sorry for the common people and laughing at Mr Modi's governance. They must work on special planning. Join all the dots which are necessary for the planning. If we need oxygen, then ask yourself- "Do we have enough plants, tankers and logistics to deal with the oxygen crisis". If you failed to join those dots, it means you have failed in your planning. Instead of that, they are busy with the West Bengal elections.

Question: Even after failing to deal with the current crisis, the Modi government thinks it will win the elections. How do you see that?

P. Chidambaram: How are they so sure of winning the elections. It raises suspicion. Something which I don't know and something which the Election Commission is not aware of, but they are very much sure. I think they may win a couple of seats but they will not win the elections at all.