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Badal govt strikes lease deal for prestigious health project,
lands in soup
WSN Network

JALANDHAR: In a rather strange deal which makes no economic sense, the Punjab Government has struck a Rs 131 crore lease deal with a consortium of St Joseph’s Healthcare System, USA, and the NRI Academy of Sciences for the Punjab Institute of Medical Sciences’ (PIMS) despite the latter's demonstrable capacity to generate Rs 350 crore on its own.

The Punjab Government has accepted the Rs 131 crore lease bid and the detailed project and the financial bid is to be placed before the PIMS governing council headed by the CM for approval.  But questions are being raised by experts about Punjab Government shirking away from its social responsibility by privatising the PIMS.

The PIMS was originally conceived as a project to help provide healthcare to large Dalit population of Doaba. The PIMS currently has a bank balance of Rs 90 crore, while more than Rs 260 crore is yet to be deposited by Punjab Urban Development Authority (PUDA) authorities with the institute in lieu of sale receipts of commercial and residential plots carved out of land earlier transferred by the former under the Optimum Utilisation of Vacant Government Land (OUVGL) scheme.

It is not known why the state government is inviting private partners to invest when PIMS coffers are full of money?

Real-estate experts say since 3 acres of PIMS land had been recently sold to the Reliance Group for Rs 106 crore, the decision to hand over the institute spread over 60.77 acre to a private player for Rs 131 crore needed to be looked into.

They say the PIMS can earn an additional Rs 130 crore if a vacant chunk of land in its complex is commercially exploited.

According to the agreement, PUDA was supposed to deposit sale receipts with the PIMS, but the CM’s office had instructed the former not to deposit any money with the upcoming institute without elaborating any reasons.

The PIMS has been awaiting completion for the past several years even as Rs 115.26 crore have been spent on its building in the Rs 241.16-crore first phase.

PUDA had taken over possession of 119.72 acre from the PIMS under the OUVGL scheme in 1994, wherein the former developed the land and was continuously selling it as commercial and residential properties through auctions.

However, work on the project was stopped midway more than four years ago, citing shortage of funds.

The previous Congress regime failed to decide whether the institute would be made operational using government funds or through public-private partnership (PPP) mode.

Badal, during his previous stint as Chief Minister, had laid the foundation stone of the PIMS and assured that the people of the state in general and Jalandhar in particular would get low-cost medical facilities of international standards after the completion of the project.

The governing council, at its meeting on February 22, 2006, had decided that the Central government should be approached for running the institute on the pattern of the All India Institute of Medical Sciences (AIIMS).

Though the then CM Capt Amarinder Singh had also shot off a communiqué to the Central government on March 10, 2006, the latter did not show interest in the proposal.

Subsequently, the Congress government decided to run the institute through the PPP mode and the Punjab Infrastructure and Development Board (PIDB) invited expression of interest from leading national and multinational companies in December 2006.

24 December 2008
 

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