Kerala's Costly PPE Procurement Under CAG Scrutiny

The Comptroller and Auditor General's report has exposed Kerala's excessive expenditure on PPE kits during the COVID-19 crisis, highlighting procurement at inflated costs and alleged undue favours to a supplier. The state paid 300% above prescribed rates, impacting its budget by over Rs10.23 crore.

A recent report by the Comptroller and Auditor General (CAG) has put the spotlight on Kerala's procurement practices during the COVID-19 pandemic. The state reportedly incurred an over-expenditure of Rs10.23 crore on Personal Protective Equipment (PPE) kits.

The CAG report indicates that, despite having set unit rates to curb costs, the Kerala government paid up to 300% higher than the prescribed prices for PPE kits in March and April 2020. It also pointed out possible undue favours extended to San Pharma, which received 100% of the purchase value as an advance, despite offering the highest price per kit.

The COVID-19 pandemic, with over 70 lakh deaths globally, had a severe impact on India. However, the country launched a successful vaccination drive, a move praised by Prime Minister Modi, who highlighted India's rapid inoculation efforts despite initial skepticism.