The Odisha State Medical Corporation Limited (OSMCL) allegedly paved the way for gross manipulation in procurement of N95 masks by keeping an ‘illogical’ term in the tender process and thereby debarring real manufactures and distributors from supplying the masks at right prices.
Till the outbreak of coronavirus, India never produced a single piece of PPE kit or N95 mask. But after the outbreak and in the changing international scenario, the country produced sufficient quantity of PPE kit as well as N95 masks indigenously, and this phenomenal achievement was made possible through enthusiastic new startups without any history of previous experience or credential.
In the meantime, the Union Government notified N-95 masks as an essential commodity under the Essential Commodities Act, 1955 on March 13, 2020. Thus, hoarding, black-marketing of the essential commodity is punishable offence under the Act.
To address the issue of higher prices of the N 95 masks, the National Pharmaceutical Pricing Authority (NPPA) intervened to ensure their availability at affordable prices in the country. After Government intervention prices of N 95 masks decreased by up to 47 per cent.
The Central Government issued an advisory to all States and in response to that Odisha Government through the OSMCL issued public notice dated April 6 2020 wherein it was mentioned that the price of N 95 respirator will be Rs 49.61, including GST.
In its tender notice, the OSMCL put certain clauses that debarred real manufacturers or their dealers from taking part in the tender thus paving way for “gross manipulation”. The tender kept a condition that bidders (manufacturers/ importers/ authorized distributors or dealers) should have minimum turnover Rs 80 lakh each of the three previous financial years, surprisingly it (turnover amount) don’t match any standard tender criterion and looks to be designed to suit some vested interests.
Thus new startups that started producing N 95 masks after corona began to outbreak in the country could not take part in the tender.
Sources said that the procurement price is likely to cross much beyond Rs 100 per piece as against the suggested price of Rs 49.61 per piece including GST. While the Government proposed to procure 20 lakh pieces, the excess cost to exchequer is well imagined.