Dear PM Modi – Lord VISHNU Can Rescue India’s Vaccination CampaignBloombergQuintOpinion
VISHNU, or Vaccine Investment & Strategically Heightened Nirmaan Undertaking, could be the invocation that shall bless and redeem India’s flailing Covid-19 inoculation drive.
I was stunned when union cabinet ministers hit back with characteristic aggression against people who were fearing a looming shortage of vaccines in India. Stunned, not by their angry language (par for the course), but by their numeric self-goal.
I rubbed my eyes in disbelief that this stat was being trotted out to create confidence, to prove there is no shortage, when:
Let’s Use This Crisis to Trigger a Seismic Change in Failed Policies
However, in a perverse sort of way, I am glad this crisis has crossed our threshold of inertial governance. Remember June 1991? When our foreign exchange reserves had fallen well below $1 billion, merely enough to buy a scary, paltry three weeks of imports? India was on its knees, staring at a default, running out of oil, going dark, stalling critical manufacturing/infrastructure plants. Our status-quoist policymakers were jolted into action. And what got scripted was an incipient free-market revolution in a hidebound economy. Hopefully, this vaccine crisis is of similar proportions and will trigger a seismic change in failed policies.
VISHNU, The Vaccine Plan That’s Blessed Ab Initio
Perhaps Prime Minister Modi would like to consider VISHNU, ie Vaccine Investment & Strategically Heightened Nirmaan (Development) Undertaking. This plan has got substance and nomenclature. After all, which Hindu devotee has not invoked Lord Vishnu, and more frequently, his seventh incarnation, Lord Ram, who enjoys a fanatical following in India? So, this effort shall be blessed ab initio, guaranteed to succeed. What’s more, it’s got three (Lord Vishnu’s lucky number) components, encompassing the production, pricing, and distribution of vaccines.
Production Of Vaccines – An Open Regime
India should openly woo all globally approved vaccines to be produced here (okay, let’s make a concession to nationalism, and keep the Chinese jabs out of this). Pfizer, Moderna, Johnson & Johnson, along with the already approved Covishield, Covaxin, and Sputnik V, should be humming on our pharma shopfloors.
Wherever possible – certainly for Covaxin, which is our own, and J&J, whose single shot can reduce the vaccination effort by half – the Indian government should buy intellectual property rights for domestic producers, converting the license into a ‘public good’, ie any authorised local manufacturer could ‘buy’ the production rights for ‘Re 1’ and flood the local market with vials.
Finally, vaccine production should be given prime of place in the government’s ambitious production-linked incentive scheme worth Rs 9 lakh crore. After all, if we can give oodles of cash to television, telephone, and solar plant makers, why not put Rs 1 lakh crore out there for vaccine producers? Remember, Serum Institute is only asking for 3%, or Rs 3,000 crore, of this corpus to double production to nearly 12 crore doses per month!
Dual Pricing For Public And Private Markets
If India can allow dual pricing for the basic essentials of life, like food and water, why are we running shy of doing the same for the third life-saver today, the Covid-19 vaccine? Just as the poor buy rice for Rs 2/kg at fair price shops, and the rich get their caviar for Rs 2,000/kg in Khan Market, why can’t we give free vaccines at public inoculation centers, and allow the rich to pay through their nose for their preferred brand at private facilities?
Just as we tax the caviar to subsidise the rice, we should put a super-tax on freely importable vaccine doses, like J&J, administered at private hospitals.
Two Distribution Channels In Sync With Dual Pricing
For public hospitals (akin to fair price shops or free water supply), the government should commandeer supplies at negotiated rock-bottom rates, but allow the same vaccines to be sold at a reasonable profit margin through private hospitals and distributors, including retail and online chemists
It’s a win-win-win for everybody. The government vaccinates the poor for free. The producers make a viable return on their investment. And paying consumers can exercise their choice to get the brand they prefer, jabbed at a place they like.
Believe me, Lord VISHNU, the Preserver, would be the happiest!
Raghav Bahl is Co-Founder – The Quint Group including BloombergQuint. He is the author of three books, viz ‘Superpower?: The Amazing Race Between China’s Hare and India’s Tortoise’, ‘Super Economies: America, India, China & The Future Of The World’, and ‘Super Century: What India Must Do to Rise by 2050’.