Were funds meant for National Biopharma Mission misused?
What's the story
The Comptroller and Auditor General of India (CAG) has flagged major gaps in the National Biopharma Mission (NBM). The audit report highlights weak governance, lack of transparency, and limited outcomes despite significant public funding. The NBM was launched as an industry-academia collaborative program to improve India's technological and product development capabilities in the biopharmaceutical sector.
Staffing issues
Manpower constraints and irregular hiring practices
The CAG report highlights severe manpower constraints in the NBM. Out of 51 sanctioned posts in the Programme Management Unit (PMU), only 12 were filled. The audit also flagged irregular hiring practices, such as appointing a consultant for enabling and training despite no provision for it. This was done with a budget of ₹5 crore, which raised questions about transparency and accountability in recruitment processes within NBM.
Financial scrutiny
NBM's financial controls and project outcomes questioned
The CAG report also flagged weak financial controls in the NBM. It said grants were released without meeting prescribed milestones, such as submission of undertakings, phase-wise completion, and final reports. In one case, ₹1.37 crore was released for a cholera vaccine project without completing the second phase. The audit found ₹47.23 crore worth expenses in five out of 52 sampled projects were not scrutinized, raising doubts over whether these funds were actually utilized for their intended purpose.
Concerns
Affordability safeguards and project contributions
The CAG report stated a lack of affordability safeguards in eight out of 52 sampled projects. These included those related to the production of safe oral cholera and COVID vaccines. The audit found no clauses mandating the final product's affordability or freezing prices, giving grantees discretion to discontinue the affordable services once the Mission ceased operations. This raised concerns over long-term accessibility and affordability of these biopharmaceutical products for Indian consumers.