The Ministry of Finance on Monday approved to sanction supply credit to India's COVID-19 vaccine manufacturers Serum Institute of India and Bharat Biotech.
Finance Minister Nirmala Sitharaman, speaking to CNBC TV-18, confirmed the reports and said, "I have today approved advance payment to Serum Institute and Bharat Biotech, total worth Rs 4,567.50 cr. Rs 3,000 cR for SII and Rs 1567.50cr for Bharat Biotech"
According to the reports, the Ministry has approved Rs 3,000 crore for SII and Rs 1,500 crore for Bharat Biotech. The payment will be released at the earliest.
Earlier, CEO Adar Poonawalla told NDTV that the Serum Institute -- the manufacturers of Covishield -- needs Rs 3,000 crore to ramp up production.
He gave the projection even as the nation is grappling with a second wave of COVID-19 and the Centre is coming under great pressure to make more and more doses of vaccine available. Poonawalla, who earlier said the SII had agreed to supply the first 100 million doses at heavily subsidised rates, said the company had to make bigger profits than it was doing now, so it could "re-invest in the production line and facilities" and be able to make more doses quickly.
"We are supplying the vaccine in the Indian market at around ₹150-160. The average price of the vaccine is approximately $20 (Rs 1500) ... because of the Modi government's request, we are providing vaccines at subsidised rates... It is not that we are not making profits... but we are not making a super profit, which is key to re-investing," Poonawalla told NDTV.
