Saturday, October 5, 2024
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India cancels orders for Chinese COVID-19 test kits

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New Delhi: The Indian Council of Medical Research on Monday asked the states and union territories to stop using the rapid antibody COVID-19 testing kits procured from China due to “wide variation” in their performance even as the government said not a single rupee will be lost as payments were not made to the Chinese suppliers of the equipment.
India procured around five lakh rapid antibody test kits from the two Chinese firms, Guongzhou Wondfo Biotech and Livzon Diagnostics, and they were distributed to several states reporting rising cases of the coronavirus infection.
The ICMR’s directive to states and UTs to not use the kits came in the midst of Congress leader Rahul Gandhi’s allegations that some people were indulging in profiteering from the immeasurable suffering of millions.
He urged Prime Minister Narendra Modi to intervene and take immediate strict action against the wrong-doers.
In a communication to chief secretaries of all states and union territories, the ICMR asked them to stop using the kits saying it found “wide variation” in effectiveness of the equipment supplied by the two Chinese firms despite promise of good performance. It asked the states and UTs to return the kits so that they can be sent back to the suppliers.
“The ICMR has not made any payment in respect of these supplies. Because of the due process followed (not going for procurement with 100 per cent advance amount), Government of India does not stand to lose a single rupee,” the health ministry said.
In an order last week, the Delhi High Court fixed the price of the antibody test kits at Rs 400 each as against Rs 600 approved by the ICMR. The ruling came on a plea by two companies, Rare Metabolics Life Sciences Pvt Ltd and Aark Pharmaceuticals, which had entered into an agreement with Matrix Labs, for distribution of the kits in India.
Matrix Lab is the the importer of the kits. The two companies approached the court after Matrix sought full payment for the kits before delivering them, according to details submitted in the court.
In a fact sheet on the issue, the government said it had conducted a tender process to procure the kits and the evaluation committee received four bids of Rs 1,204, Rs 1,200, Rs 844 and Rs 600. Accordingly, bid offer of Rs 600 was considered as it was the lowest. An official said cancellation of the orders from the Chinese firms will not have any financial bearing on the government.
The government said the procurement was undertaken when there was a huge demand for the test kits globally and various countries were applying their “full might”, monetary and diplomatic, to acquire them. (PTI)

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