The matter was hanging fire for about two years as the Union Labour Ministry had refused to run the Medical college and asked the state government to take over the buildings and other infrastructure developed by it but Himachal Government was not ready to pay interest on liabilities amounting Rs 285 crore.
The Labour ministry was pressing the government to pay 10 per cent interest on liability of Rs 285 crore but the state government not only wanted the interest to be waives off but also put a condition that the amount would be paid in five installment.
The state government assured that the admission for first batch of MBBS with 100 seats would start from 2017-18 and there would be no deviation from terms and conditions agreed to by both the governments, Chowdhary added.
The state government agreed that a representative of the ministry would be in the Board of management of the college and some seats would be reserved for children of ESIC employees.
With ESIC medical college becoming functional in 2017-18, state would have seven medical colleges in government sector including an AIIMS at Bilaspur and four medical colleges at Nahan, Hamirpur, Chamba and Ner Chowk(Mandi) .
Besides, two medical colleges namely IGMC and Tanda Medical College with 100 seats each are already functional in the state.