The government seems to have no plan to produce vaccines from its own  vaccine manufacturing units namely BCG Vaccine Laboratory in Chennai,  Pasteur Institute of India, Coonoor and Central Research Institute at  Kasauli. It has decided to procure almost all the vaccines required for  the country’s national immunization programme from the private vaccine  companies with no check on their quoted prices. The companies like Serum  Institute of Pune, Bharat Biotech, Green Signal Biopharma, etc. are  some of the main suppliers of vaccines to the national programme now. It  is more than three years after the Union health ministry headed by Dr  Anbumani Ramadoss ordered the closure of three public sector vaccine  manufacturing units. After the closure of the vaccine units there has  been a steady rise in the prices of most of the widely used vaccines in  the country. With this, the expenditure on universal immunization  programme had also increased substantially. The health ministry after  the closure of the vaccine units had claimed that it could negotiate  with the private players and manage to procure vaccines at lower prices.  But, a  scrutiny of prices of vaccines procured by the government from  the private players clearly shows that the rates for the year of 2009-10  were much higher than the rates in the previous years. In fact the  private players used to offer the vaccines at competitive prices before  the closure of the PSU units as per the information available from the  health ministry itself. 
The Parliamentary standing committee on health and family  welfare, headed by Amar Singh, had taken serious objection to the  continuing delay on the part of the health ministry in resuming  operations of the three closed PSU units. The committee felt  that the  suspension of manufacturing licences of the three units should be  revoked at the earliest and they should restart their production.  Considering the prices at which vaccines are offered by the private  players, the government should not have allowed any delay in this  matter.
The government cannot afford to ignore a suggestion like this  from a Parliamentary panel. But, the health ministry did  not bother to  undertake the modernization of the vaccine units during last three years  even when shortages of vaccines were being reported by state  governments. At a time when multinational drug companies are taking over  the pharmaceutical industry of the country, the Central government has a  critical role to play in supplying at least some of the essential drugs  and vaccines to the poorer sections of the society. As it is, there is a  steady rise in the prices of most of the widely prescribed medicines as  majority of the drugs are outside the price control.