State governments may use bank guarantees to buy Covid-19 vaccines

Advice comes from Centre; some states begin talks with pharma firms

The Centre has advised the state governments to explore using bank guarantees to finance the cost of buying Covid-19 vaccines. Taking the cue, some of the states have broached the idea with the pharmaceutical companies manufacturing them. 

These guarantees will offer the states the option to spread the cost of paying for the vaccines over more than one financial year. At the same time, the companies will not be left with just empty promises from government bodies before they ship their doses to the districts where the vaccines will be stored. Since it is the states which will decide the