Use of Govt Assets and Land to promote PPP

Government of West Bengal
Health & Family Welfare Department
MS Branch, PPP Cell
Swasthya Bhawan, Salt Lake, Kolkata-70

Memo No. HF/PPP/23/2012/290 Date: 16.08.2013


Sub: Use of Government assets and land to promote PPP in Medical Education in West Bengal.

This Order seeks to set out a broad policy framework, with the approval of the appropriate authority, to promote medical education in the state through Public Private Partnership (PPP) using land and assets available with the State Government.

1. The Department of Health & Family Welfare (DoHFW) shall invite offers from interested organizations to establish Medical Colleges under PPP. The equity of the State Government would be in the form of the ‘leased out’ assets e.g land and buildings in some of the less than fully utilized health facilities, where such Medical Education Facilities would be established under PPP. The DoHFW would separately notify such health facilities from time to time.

2. Appropriate mechanisms and terms & conditions would be included in the legal agreement to be executed with the selected private partner to ensure that at least 25% of the indoor beds in the Medical College & Hospital are reserved for poor patients as recommended by the DoHFW for free treatment with all facilities analogous to facilities available for existing indoor patients under free beds in Government Medical Colleges & Hospitals of the state.

Apart from the above provision, there will be an alternative provision under which the private partner shall pay concession fee to the DoHFW on monthly basis. The amount of concession fee shall be 25% of the total receipts from patients admitted in the Inpatient Department (IPD) of the hospital in each month. The said concession fee shall be utilized by the DoHFW for free treatment of the poor patients, admitted in this hospital, with all facilities analogous to facilities available for existing indoor patients under free beds in Government Medical Colleges & Hospitals of the state. The proceeds of the concession fee shall be used by the DoHFW for reimbursing the cost of such services to the private partner under this provision.

The private partner shall have the option to choose any one of the above two provisions.

3. A minimum of one-third of the total seats (i.e. 33.33% of the total seats) in the Medical College shall be earmarked for the State Government for admission through the Entrance Test as will be applicable in the state of West Bengal.

4. The Bidding Parameter for selection of the technically qualified applicants would be the percentage of medical seats earmarked for the state government for admission through the Entrance Test over and above the minimum requirement specified under Paragraph ‘3’ above.

5. In order to expedite the process of establishment of the medical education facilities, the private partner may be permitted under a MoU with the DoHFW to utilize the facilities of the existing District Hospital or other Government Hospital of the DoHFW, if required, in compliance with the requirements of the Medical Council of India (MCI) if the same is located within permissible distance from the proposed site in the concerned District. This distance, at present, is 10 kms. The MoU shall be valid for a period of three years or till such time the private partner establishes its own Hospital at the allocated site, whichever is earlier.

6. In case such Hospital as mentioned under paragraph ‘5’ above is not available or can not be provided in the proposed site or within 10 kms of the proposed site, the selected private partner shall be required to build and operationalise its own hospital at the allocated site and thereafter establish the Medical College in accordance with the regulations of the MCI.

7. As per Rule 245 of West Bengal Land and Land Reforms Manual 1991 as amended hereafter vide no. 518-LR/3M-11/06 GE (M) dated 20.02.2006, long term settlement of land for the period of 99 years in favour of institutions for imparting education on engineering, medical and other such professional faculties can be done on payment of one time Salami @ 40% of the market value of the land and @ 0.3% of the market value of the land as annual rent. It has been decided that an appropriate mechanism to refund the salami amount and provide full rent waiver, should be instituted only for those private partners, who will be able to secure all relevant clearances and actually start classes for MBBS within two years of signing the legal agreement with the DoHFW in case of Paragraph ‘5’ above. However, in case of Paragraph ‘6’ above, the provision of refund of salami and rent waiver should be applicable if the private partner is able to secure all relevant clearances and actually start classes for MBBS within five years of signing the legal agreement.

8. Subject to the conditions set out in previous Paragraphs, the DoHFW would seek Expressions of Interest (EoI) from interested organizations through an open and transparent process. These EoIs would essentially be site specific and would be clubbed and /or disaggregated depending upon the needs of the particular case and the market responses. The evaluation parameters may also vary from site to site subject to the minimum requirements specified under Paragraph ‘2’ and ‘3’ above.

9. The DoHFW shall adhere to the procedures laid down by the Department of Finance (DoF) in the PPP policy of the state government issued vide number 5266-F(H) dated June 21, 2012. A Departmental Committee (DC) would be set up in the DoHFW under the Director of Medical Education (DME) for the actual framing and release of Eols, preliminary evaluation etc. The other members of the DC would include the departmental FA, SS (ME), MD, WBMSC, one or more Joint/Additional/Special Secretaries of the department.

10. If required, to manage the project development component and oversee implementation of this PPP initiative, the DC is also authorized to engage one or more Transaction Advisor(s) (TA) from the empanelled list of TAs for Social Infrastructure sector finalized by the DoF vide notification no. FS-116(PPP Cell)/2012 dated 10th September, 2012.

11. The above Policy may be reviewed after five (5) years.

12. The DC is required to float Eols expeditiously in terms of the above principles.

This is issued with the approval of the Standing Committee of the Cabinet on Industry, Infrastructure and Employment and supersedes previous Memorandum issued on this subject vide Memo no. HF/PPP/15/2012-Part1/151 dated 26.09.2012.

Sd/- Joint Secretary

No. HF-290 dated 16.08.2013, Source