Development of Affordable Healthcare Projects on PPP mode in Angul, Barbil, Bhadrak, and Jharsuguda Districts, Odisha

Record of Discussion 1. The 45th EC meeting to consider granting final approval to the proposal, ‘Development of Affordable Healthcare Facilities’ at Angul, Barbil, Bhadrak and Jharsuguda in the State of Odisha was held under the Chairmanship of Secretary (EA) on 14th October, 2024 at 3.30 PM. The list of participants is at Annexure I. 2. Details of the Proposal: Project Angul Barbil Bhadrak Jharsuguda Particulars Affordable Affordable Affordable Affordable Name of the Healthcare Healthcare Healthcare Healthcare Project- Project Project- Angul Project- Barbil Project- Bhadrak Jharsuguda Type of PPP (BOT, BOOT, Design Build Finance Operate and Transfer BOLT, OMT) Location Angul, Barbil Bhadrak, Jharsuguda, District- Angul District- Keonjhar District- Bhadrak District- Jharsuguda Sub Scheme -II of VGF Scheme for Pilot/Demonstration projects in Health Proposed under Sector Phase-I (50% Capacity) - 2 years from Effective Date Construction Phase-II (100% Capacity) - 5 years from Effective Date Period Concession 32 Years (extendable further on ROFR basis) Period Angul Barbil Bhadrak Jharsuguda Capacity (No. of 200 200 100 100 beds) Cost of the Project 120 125.5 54.4 54.4 (In INR Cr) Sources of Project Capex Grant Equity Debt Total Opex Financing as per Capex Grant financial close Angul 77.00 11.00 32.00 120.0 43.6 Barbil 77.5 12.00 36.00 125.5 43.6 Bhardak 38.00 4.5 11.9 54.4 38.00 Jharsuguda 38.00 4.5 11.9 54.4 37.00 Details of TPC and VGF as approved in principle by the 40th EC and as discovered by the market through bidding Details Angul Barbil Bhadrak Jharsuguda Project Cost 97.54 97.54 48.35 48.35Project Cost as per Financial 120 125.5 54.40 54.40 Close after bidding Total Capex VGF in-principle 78.03 78.03 38.68 38.68 approved in 40th EC Total Capex VGF as quoted by 77.00 77.5 38.00 38.00 Bidder Total O&M VGF as in-principle 69.82 69.82 53.95 53.95 approved in 40th EC Total O&M VGF as quoted by 43.6 43.6 38 37 Bidder 39.02 cr. 39.02 cr. 19.34 cr. 19.34 cr. GoI capital grant out of bid discovered VGF 37.98 cr. 38.48 cr. 18.66 cr. 18.66 cr. GoO capital grant out of bid discovered VGF GoI opex grant out of bid 34.91 cr. 34.91 cr. 26.98 cr. 26.98 cr. discovered VGF GoO opex grant out of bid 8.69 cr. 8.69 cr. 11.02 cr. 10.02 cr. discovered VGF 3. On behalf of the Chair, JS(ISD) welcomed the participants to the meeting and requested Government of Odisha to make a presentation to the EC. It was appraised that the proposal was earlier recommended for In-principle approval by the 40th EC for developing affordable healthcare facilities at four locations viz., Angul, Barbil, Bhadrak and Jharsuguda, in the State of Odisha. It was also appraised that the proposal received for Final approval was duly circulated to all the EC members and their response have also been received from the PSA. 4. The Commissioner cum Secretary, Health and Family Department, Government of Odisha has made the presentation. The PSA stated that after In- priniciple approval, RFP was published on 30th November 2022. The LoA was issued to the selected bidders on 5th May 2023 and the concession agreement was signed on 4th October, 2023. The financial close for Angul and Barbil was achieved on 19th August, 2024 and for Bhadrak and Jharsuguda on 28th July, 2024. The PSA informed that the quoted capex and opex VGF is within the limit of 40th EC approved VGF. 5. After the presentation, the Chair asked the EC members for their observations. NITI Aayog while supporting granting the final approval to the project asked about the change in the consortium members, i.e., CHRC was substituted by Utkal Healthcare Pvt Ltd in Angul and Barbil? 6. Ministry of Health & Family Welfare while supporting granting the final approval to the project asked the PSA for following the standards as per Indian Public Health Standards 2022 (IPHS-2022).7. DoE supported the grant of the final approval to the project and said that they have no further comments to offer. 8. The Chair suggested the GoO to ensure that: i. Remaining approvals may be provided by the GoO in a timely manner. ii. Handholding and support may be provided by the GoO to the concessionaire so that the health care facility start functioning at the earliest. The chair further asked whether the GoO is thinking of integration of their own health care scheme with the PM-Jan Arogya Yojana for enhanced impact and outcome? 9. The GoO submitted the following to the queries raised by the EC members and the Chair. i. With respect to the observation on change in consortium member, the GoO submitted that as per the RFP, this change is allowed and accordingly the same was approved by the State Empowered Committee. ii. GoO will comply with the provisions of IPHS-2022. iii. The process of various approvals has commenced and the same will be provided by 31st October, 2024. iv. The hospital shall be operationalized by December, 2026. v. With respect to on-boarding Jan-Arogya Yojana, GoO submitted that the scheme is going to be integrated in such a way that none of the beneficiaries are left out. 10. After detailed deliberations, the EC unanimously recommended the proposal to the Hon’ble Finance Minister for granting Final Approval of VGF under Sub- scheme II of the VGF Scheme with the following conditions: i. GoI VGF (Capex and Opex) support shall be capped as per table below. Details Angul Barbil Bhadrak Jharsuguda Total Capex VGF in-principle 78.03 78.03 38.68 38.68 approved in 40th EC Total Capex VGF as quoted by 77.00 77.5 38.00 38.00 Bidder Total O&M VGF as in-principle 69.82 69.82 53.95 53.95 approved in 40th EC Total O&M VGF as quoted by 43.6 43.6 38 37 Bidder 39.02 cr. 39.02 cr. 19.34 cr. 19.34 cr. GoI capital grant out of bid discovered VGF GoI opex grant out of bid 34.91 cr. 34.91 cr. 26.98 cr. 26.98 cr. discovered VGFii. All conditions of the VGF Scheme, such as entering into Tripartite Agreement, etc., shall be adhered to. 11. The meeting ended with vote of thanks to the Chair. ***Annexure I List of Participants Department of Economic Affairs 1. Shri Ajay Seth, Secretary-in Chair; 2. Shri B. Purushartha, JS(ISD); 3. Ms. Arya Balan Kumari, Joint Director; 4. Ms. Anmol Waraich, Assistant Director. Government of Odisha 1. Shri. Saswat Mishra, Principal Secretary , Finance, GoO; 2. Ms. Aswathy S., Commissioner cum Secretary, Health & Family Welfare Department; 3. Ms. Jasmine Patnaik, Joint Secretary, Health & Family Welfare Department; Department of Expenditure 1. Shri Pawan Kumar, Director; 2. Shri Ayush Bansal, Deputy Director. NITI Aayog 1. Shri CPS Reddy, Senior Advisor; 2. Ms. Nidhi Arora, Consultant. Ministry of Health & Family Welfare 1. Ms. Neha Garg, Director. ***