New Delhi: The Centre on Tuesday said it has placed fresh orders for 44 crore doses of Covishield and Covaxin after Prime Minister Narendra Modi announced that the Centre would take over the state procurement quota and provide free jabs to state governments for inoculation of all above the age of 18.
These 44 crore doses of COVID-19 vaccines will be available till December 2021, starting now, the Union Health Ministry said.
"In immediate follow-up of the prime minister's announcement of these changes in the Guidelines of National COVID Vaccination programme yesterday, the Centre has placed an order with Serum Institute of India for 25 crore doses of Covishield and with Bharat Biotech for 19 crore doses of Covaxin.
"Additionally, 30 per cent of the advance for procurement of both the COVID-19 vaccines has been released to Serum Institute of India and Bharat Biotech," an official said.
In an address to the nation on Monday, the prime minister announced that the central government would would take over the 25 per cent state procurement quota and provide free coronavirus vaccines to states and union territories for inoculation of all above 18 years of age from June 21.
Asserting that vaccine supply would be increased significantly in the coming days, Modi said the Centre has now decided to buy 75 per cent of jabs from vaccine makers for free supply to states, while private sector hospitals will continue to procure the remaining 25 per cent.
Meanwhile, a report by a Japanese brokerage said on Tuesday that Prime Minister Narendra Modi's review of the vaccination policy was a "volte-face", and when coupled with the food scheme extension till November, it may lead to the government miss its budgeted fiscal deficit target.
The tab of vaccination for all the adults, coupled with the extension of the free food scheme till November, will entail an expenditure of up to Rs 1.05 lakh crore or 0.5 per cent of the GDP, Nomura said.
It added that this can result in the government slipping on the 6.8 per cent fiscal deficit target. Such an eventuality could also weigh on the country's sovereign ratings, which are due for review by the year-end or early-next year, it said.
"The government's volte-face on its vaccination policy and an extension of its free food programme amounts to targeted fiscal spending in response to the second wave, which will result in additional expenditure of 0.4-0.5 per cent of GDP," its economists said.
Acknowledging that the second wave of COVID-19 is receding, the note said the distribution of free vaccines and free food are essential to deal with both lives and
livelihood. with agency inputs