SAC approves State Health Care Investment Policy-2019



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The State Administrative Council (SAC) which on Friday under the chairmanship of Governor, Satya Pal Malik approved the “State Health Care Investment Policy-2019.

The spokesman said that salient features of the Policy include (i) 30% subsidy on Capital Investment to be provided for setting up of Multi Speciality Hospitals, Super Speciality Hospitals, Medical Colleges, Nursing Colleges and Paramedical Colleges.

Governor Satya Pal Malik chairing SAC meeting on Friday, March 8, 2019, at Jammu.

The subsidy on Capital Investment will be limited to a maximum of Rs  3  crore in cities with population less than 10 lakh and a maximum of Rs 5 crore in cities with a population of more than 10 lakh as per 2011 census. (ii) Interest Subsidy @5% per annum on term loan subject to a ceiling of Rs 15 lakh per year for a period of five years from the date of the operationalization of the project. (iii) Subsidized power tariff rates as applicable to the Industries Sector. (iv) 100% Subsidy on purchase and installation of DG sets with an upper ceiling of Rs 45 lakh. (v) One time subsidy upto 25% of the cost incurred on induction training of nursing and paramedical staff will be provided by the State Government, capped at a maximum of Rs 12,000 per person. (vi) The Promoters/Investors setting up the project shall be free to establish the unit on their own property/acquired land subject to eligibility of the same as per defined land use. (vii) Allotment of land at premium rates as applicable under Industrial Policy of 2016 through land bank to be created through SIDCO & SICOP.

(viii) For Multi/Super Speciality Hospitals to be set up outside Municipal Corporation limits, land up to 5 acres for 200 bedded hospitals and upto 10 acres for 500 bedded hospitals will be provided subject to the availability of land.  (ix) Minimum Capital Investment required is Rs 80 crore for 200 bedded hospitals and Rs 200 crore for 500 bedded hospitals, within a period of five years. (x) Medical Colleges being set up outside Municipal Corporation limits will be provided land upto 25 acres at a token premium of Rs. 1 per kanal, subject to the availability of land.  Minimum Capital Investment required will be Rs 200 crore to be made within a period of five years. (xi)   Single window clearance mechanism will be adopted for processing the project proposals with final approval to be accorded by Apex Level Project Clearance Committee (ALPCC).

Under the Policy, the Government may declare a well defined geographical area as ‘Medical City’ for having potential and being conducive for development and promoting medical tourism in the state.

The State HealthCare Investment Policy-2019 aims to promote/ encourage private parties/ entrepreneurs to set up healthcare infrastructure in the state for which Government shall provide subsidies on various fronts to the entrepreneurs. The Policy has been drafted after extensive deliberations in the health Department. The Policy is expected to improve the accessibility of quality healthcare services to the people, promote establishment of hospital infrastructure, medical and allied educational infrastructure and establish Jammu and Kashmir as a destination of choice for health care service providers in the private sector, besides promoting medical tourism.

It is noteworthy to mention that the private healthcare sector in the State has not come up like in other States with around 80% of the healthcare facilities being provided by the public sector. In the absence of the private sector, there is a huge rush of patients in the Government institutions which affects the quality of patient care available. There are many Primary Health Centres (PHCs) and Sub Centres functioning from rented buildings with some being under staffed. As per the Indian Public Health Standards (IPHS) norms, J&K still requires 69 new community Health Centres, 222 PHCs and 1396 Sub Centres. Even for implementation of Ayushmaan Bharat, Hospitals, Nursing Homes would be required in the private sector for its implementation.


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