Fate of medical project hangs in balance

Neena Sharma

Tribune News Service

Dehradun, May 26

A World Bank-assisted project aimed at plugging gaps in the existing health infrastructure and manpower availability in Uttarakhand has failed to take off due to the unresolved financial tangle involving the repayment of the loan which is to be extended by the bank.

Though the Uttarakhand Government had planned a Rs 800 crore project with the World Bank in 2015, confusion continues over the fate of the project.

“An agreement about the loan re-payment, whether the issue of dollar fluctuation too would be considered and the ratio of interest payment between the Centre and the state, has not been finalised. These issues are the prerogative of the Centre’s Department of Economic Affairs,” said Om Prakash, Principal Secretary, Medical and Health.

Officials in the Department of Health say while the issue of fluctuating dollars will lead to a minimal hike of 2 per cent in the overall interest, but the issue pertaining to the repayment modalities between the Centre and the state are complex.

“The Uttarakhand Government has been of the view that the Centre and the state should share the burden of loan repayment in the ratio of 90:10 which will reduce the burden of the state. But the Centre is persisting with the 60:40 ratio, which has been effected even in the sharing of funds, after the NDA government came to power,” said an official in the secretariat. Beside, the project that was first planned under the chief ministership of Vijay Bahuguna underwent major changes, when Chief Minister Harish Rawat took over.

“While the World Bank project will be on public-private partnership, it will first be launched in the plain areas of the state. These changes were brought about by the present government as it was felt that the project on PPP mode was not well received in the hilly regions of the state. So, there is great deal of uncertainity regarding the project,” said Dr RP Bhatt, former DG Health.