Land Boost for Affordable Healthcare

The Health and Family Welfare department can now sub-lease land allotted to it by the State Government to private partners on Public Private Partnership (PPP) mode for establishment of affordable healthcare projects. The Health department can sub-lease the land in favor of selected private partners on execution of a lease deed finalized for the purpose. As per the decision, all stamp duty and registration fees in connection with the lease deed will be borne by the private partner. In a communication to the Health Secretary in this regard, Additional Secretary of Revenue and Disaster Management department Avaya Kumar Nayak clarified that the sub-lease period will be co-terminus with the concession agreement for 32 years, which is extendable on mutual agreement. The premium payable by the private partner for the land sub-leased to it will be as per the rate of Industrial Policy Resolution (IPR) 2015 , he said.

Before execution of the sub-lease deed, the private partner will make one-time payment of the premium and after the deed is executed, it will make payment of annual ground rent at one percent of the IPR rate of premium fixed for the land and cess at 75 percent of the ground rent. The premium, ground rent and cess received by Health department will be deposited as land revenue with the district administration concerned in the relevant head of account of Revenue and Disaster Management department. The private partner will have the right to grant license of the property or the built-up space in favor of third parties for the purpose of ancillary facilities. It will also be entitled to receive and retain all revenues that may be generated from the ancillary facilities. Odisha Government is facilitating the country’s biggest ever PPP project in healthcare sector by proposing to set up affordable hospitals at 25 locations which will collectively entail investments to the tune of Rs 1,300 crore and create 2,900 new hospital beds.  Besides making healthcare affordable for people, the project will also create over 10,000 high-paying and highly-skilled jobs in the State. – New Indian Express

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