NEW DELHI: The health ministry on Monday said India is cancelling the order of rapid anti-body test kits from China over performance issues, adding that the government does not stand to lose a single rupee since due process was followed during procurement.

The health ministry's statement came after the country's apex health research body Indian Council of Medical Research (ICMR) on Monday asked states to stop using the COVID-19 rapid antibody test kits procured from two Chinese companies and return them to be sent back to the suppliers.

"ICMR is doing everything it can to ramp up testing. This requires procurement of kits and supplying them to states. This procurement is being undertaken when globally there is a huge demand for these test kits and various countries are applying their full might, monetary and diplomatic, to acquire them.

"ICMR’S first attempt to procure these kits did not elicit any response from the suppliers. Its second attempt got adequate responses. Of these responses, taking sensitivity and specificity in mind, kits of two companies (Biomedemics and Wondfo) were identified for procurement. Both had the requisite international certifications," the ministry said.

The government added, "For Wondfo, evaluation committee got 4 bids and the corresponding quotes received were Rs 1,204, Rs 1,200, Rs 844 and Rs 600. Accordingly, a bid offer of Rs 600 was considered as L-1. In the meanwhile, ICMR also tried to procure the kits directly from Wondfo company in China through CGI."

However, the ministry said that the quotation received from direct procurement had few issues, including quotation was FOB (Free on Board) without any commitment on logistics issues and was on the basis of 100% direct advance without any guarantees.

"There was no commitment on timelines. Rates were communicated in US dollars without any clause for accounting for fluctuations in prices. Hence, it was decided to go for Wondfo’s exclusive distributor for India for the kit who quoted an all inclusive price for FOB (logistics) without any clause for advance.

"It needs to be also remembered that this was the first ever effort by any Indian agency to procure such kits and the rate quoted by the bidders was the only reference point," the ministry said.

The ministry said that after receipt of some supplies, the ICMR again conducted quality checks on these kits in field conditions and based on scientific assessment of their performance, the order in question (Wondfo) along with the order in respect of another make were found to be under-performing and have been cancelled.

It added that India won't lose a single rupee since it followed all procedures.

"It needs to be stressed that ICMR has not made any payment whatsoever in respect of these supplies. Because of the due process followed (not going for procurement with 100% advance amount), the government of India does not stand to lose a single rupee," it clarified.

More than half a million kits for testing for antibodies to coronavirus were ordered from China this month as a way to ramp up India's screening. But the Indian Council of Medical Research said several states had complained about the quality of the equipment from two firms and these need to be sent back to China.

Congress leader Rahul Gandhi has alleged that some people were indulging in profiteering while supplying rapid test kits for COVID-19 to the government.