AIIMS-Madurai delay is because of funding pattern, says Union Health Minister

The Health Ministry constituted the Revised Cost Estimate Committee to examine the matter in detail, says Mansukh Mandaviya

Union Health Minister Mansukh Mandaviya said in the Lok Sabha that the All India Institute of Medical Sciences (AIIMS) - Madurai project implementation had taken time since it had been decided to take it up under EBR funding through Japan International Cooperation Agency (JICA).

He was responding to a query raised by DMK MP V. Kalanidhi on whether the government was aware that even after three years of laying of the foundation for AIIMS - Madurai, the construction work had not begun. He demanded to know the steps taken for its completion within the stipulated time.

The Minister said after preparation of inception report, campus master plan, facility planning, hospital design concept and equipment planning, the loan agreement was signed between the governments of Japan and India on March 26, 2021.

“Since the Cabinet approved project cost was ₹1,264 crore and the revised cost was estimated at ₹1,977.8 crore by JICA on account of inclusion of 150-bedded Infectious Diseases Block and some other facilities, the Ministry constituted the Revised Cost Estimate Committee (RCC) to examine the matter in detail,” he said.

“Thereafter, the Ministry submitted the proposal for financial appraisal along with report of the RCC to the Department of Expenditure (DoE). After examination, the DoE appraised and approved the proposal and it has been approved by this Ministry on October 11,2022,” he added.

Details provided by the Minister also show that pre-investment activity, including the construction of boundary wall is nearing completion. The Expression of Interest for hiring of Project Management Consultant for implementation of project has been completed and the request for proposal was floated on October 25, 2022.

As per the loan agreement, the project implementation period would be 5 years and 8 months (from March 2021 to October 2026).