Bhubaneswar: The state government cancelled an MoU signed with Vedanta Ltd for construction of a 500-bed medical college and hospital at Bhawanipatna in Kalahandi district. The agreement was cancelled as the company has delayed in executing the project.
The Health and Family Welfare (H&FW) department issued an order in this regard, Tuesday. “The government after careful consideration has been pleased to cancel the MoU signed on 27.03.2018 between government of Odisha and M/S Vedanta Ltd for construction of a 500-bedded teaching hospital for the medical college at Bhawanipatna with immediate effect due to inordinate delay in execution of the project,” read the order.
“We have set a target for the functioning of the proposed medical college and hospital in Kalahandi by 2022-2023 with a capacity of 100 MBBS seats. Initially, it was planned to construct a 500-bed teaching hospital, which was subsequently increased to 650 beds as per the requirement of the National Medical Commission (NMC). However, the company was delaying the project despite several rounds of discussions. Therefore, we have cancelled the MoU,” H&FW Additional Chief Secretary, PK Mohapatra told Orissa POST.
With the cancellation of the MoU, the works department has been urged to take up the project and complete the balance work, he said.
“I have asked the officials to place the estimation and funds with the works department immediately,” Mohapatra said, adding, the works department will continue the work on the existing infrastructure developed by Vedanta and the state will bear the required fund.
According to sources, a total of Rs 350 crore was supposed to be invested for setting up the proposed hospital for which Vedanta had agreed to spend around Rs 100 crore.