The proposal to set up the National Blood Transfusion Authority (NBTA), a measure to streamline regulations in the blood banks sector, has been dumped by the Government, after mooting the idea more than five years ago.

A draft Cabinet note was prepared and sent to various departments such as Department of Expenditure & Economic Affairs, under Ministry of Finance, Department of Health and the Planning Commission for comments in September 2009. But the Ministry of Finance had outrightly shot down the proposal.

With the Department of AIDS Control, which had to implement the proposal, taking no further steps to revise the proposal yet, the proposal seemed forsaken. This has also drawn flaks from the Parliamentary Standing Committee attached to the Ministry of Health.

“The Committee finds that the basic premise for non-approval of the same is the legal infirmities existing in the present scheme and the requirement of appraisal of the expenditure proposals at the appropriate forum before considering their approval. The Committee, therefore, impresses upon the Department to have a relook at the scheme based on Finance Ministry’s detailed observations and try to remove the infirmities and submit the same again for reconsideration and approval,” the panel observed in its recent report.

The Proposal for setting up of NBTA was one of the approved activities under NACP phase III under the 11th Plan Period. A vision document was prepared in 2008 which was reviewed during a meeting of experts. The proposed budget allocation for NBTA was Rs.39.55 crore for two years under NACP-III.

The NBTA was planned to regulate all activities related to the blood collection and transfusion and will make good laboratory practices mandatory for the blood banks. There are more than 2300 licensed blood banks in the country and health ministry is providing technical and financial support to around 1230 of the public and charitable blood banks. India already has a National Blood Policy and a National Blood Programme to ensure adequate supply of safe and quality blood. But the new legislation is being proposed to define the roles of these authorities clearly and ensure quality of blood banks and infection-free transfusions.

However, the Finance Ministry felt that there was no need for a new authority as the functions of the NBTA could be done by strengthening the existing mechanism. “In has been indicated that State governments spend Rs.700 crore on blood banks annually and the intent is that these funds would be provided to NBTA to enable it manage these blood banks through the respective State Blood Transfusion Authorities (SBTAs). Prima facie, it is not clear why the State Governments would provide these funds to NBTA without a specific legal provision, or whether alternate/ additional central funding is being conceived here. It is difficult to support the present formulation without a clear understanding of the fund requirement and its source in the present case,” the Ministry said, citing another objection.

“What appears to have been proposed is taking over regulation and administration of blood banks (including financial administration) by NBTA through SBTAs. Prima facie, it does not appear to be feasible without a clear legal mandate in this regard,” it further said.