Medical institute in doldrums
The project has been hanging fire for 15 years
Sarbjit Dhaliwal
Tribune News Service

Jalandhar, July 3
Will the high-profile Punjab Institute of Medical Sciences (PIMS), which was conceived here 15 years ago and to be built with an initial estimated cost of Rs 156 crore, become operational ever? This is the question that begs answer from the state government.

At a recent meeting, Chief Minister Parkash Singh Badal directed the authorities concerned to complete the remaining work on the building of PIMS by September 15. The builder company, which was engaged to construct it, has been given extension to complete the task by the date. In fact, already 95 per cent work on the building of the institute has been completed.

The institute was to admit 150 MBBS students each year, run postgraduate and post-doctoral courses and provide modern research facilities. A 1,000-bed hospital with several super specialties was to be attached to it. However, the number of MBBS seats has been brought down to 100 and the number of beds to 500.

The state government had formed the Punjab Institute of Medical Sciences Society to run the institute. However, when the state government facing a financial crunch felt that it would not be able to operate, decision was taken to run it in public-private partnership mode.

The Punjab Infrastructure Development Board (PIDB) was given the task to select private players to run the institute. After shortlisting the three companies, finally the bid was allotted to the NRI Academy of Sciences and others, which is a consortium of various companies by the PIDB for an upfront consideration of 131 crore.

However, the consortium failed to meet the deadline set by the PIDB to deposit the money. It has paid only Rs 6 crore till date. The consortium was to deposit Rs 65.5 crore by January 29. Besides, it was to give a bank guarantee worth Rs 20 crore, it is learnt.

Sources said the consortium had been pressing the PIDB to give extension to it for depositing the money, as it has approached various banks to raise loan to make 
the payment.

However, experts say that the PIDB had left with no alternative except to cancel the award to consortium.

There were three bidders and of these consortium was awarded the bid. Experts say that the other bidders could take the plea that if they had been aware that extension would be given to deposit 50 per cent of the upfront consideration, they would have given higher bid than the one offered by the consortium.

The sources said in case the state government wanted to run in the institution in PPP mode, it would be having no alternative except to direct the PIDB to hold the bids afresh providing a level-playing field to other companies. Starting of process afresh means further delay in making the institute operational.