Pune: PMC To Raise Rs 360 Crore Loan To Set Up 350-Beds Hospital In Warje

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Pune, 18th February 2023: The Pune Municipal Corporation (PMC) has approved a proposal to set up a 350-bed multispecialty hospital in Warje on a Design-Build-Finance-Operate-Transfer (DBFOT) basis. As part of the deal, the municipality will take a loan of Rs 360 crore for the Rural Enhancers Company, the successful bidder, in return for the availability of 10 percent free beds and 6 percent beds at Central Government Health Yojana (CGHS) rates for Pune residents. The remaining 84 percent of beds will be used by the company at commercial rates.

The proposal was first approved in February 2022, before the end of the municipal corporation’s term last year, and was sent to the state government for approval. After the government approved the loan raising, the tender process was started. Only two companies participated, and Rural Enhancers Company’s proposal was accepted.

The hospital will be set up on a 10,000 sq ft plot at Survey No. 79/B at Warje, and the municipality will take a loan of Rs 360 crores from a bank in the Netherlands. After the hospital is established, the company will repay the loan. The concerned company will pay rent of Rs 90 lakhs to the PMC every year, and the contract will last for 30 years, with a 3 percent increase in rent every year.

An insurance company in the Netherlands will insure the loan, and the loan installments will be paid by the company. There will be no financial liability on the PMC. A separate cell will be set up to monitor whether citizens get the benefit of free beds and CGHS beds or not.

According to the PMC commissioner Vikram Kumar, this hospital is expected to benefit the residents of Pune, as 10 percent of the beds will be available for free and 6 percent will be available at CGHS rates. The municipality has also raised the loan, which is a significant financial commitment. With the deal now approved, work on the hospital is expected to begin in the near future, with the hospital providing essential healthcare services to the people of Pune.


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