New Delhi, Sep 30 (IANS) The union cabinet Friday cleared a proposal to set up a central procurement agency (CPA) for medical goods, making it easier to address shortages and facilitating the health ministry in procuring and distributing quality medicines and medical equipment to states.
The decision to set up a CPA under the health ministry was taken during a cabinet meeting headed by Prime Minister Manmohan Singh.
Aimed at efficient procurement and distribution of health sector goods, the agency will also help the government curb wastage, thus leading to savings.
The idea was also to eliminate shortages in the states of medical goods like vaccines and contraceptives, a statement issued here said.
The cabinet also approved a one-time budgetary support of Rs.50 crore to establish the CPA.
‘Thereafter, CPA will charge service fee, which will be well within the overall ceiling of five percent of the value of procurement, to meet its subsequent operational expenses,’ the statement said.
