Tamil Nadu Chief Minister O. Panneerselvam Wednesday told Prime Minister Narendra Modi that the state government 'in principle' has consented to take over two medical colleges of the ESIC, subject to conditions.
In a letter to Modi, text of which was released to the media here, Panneerselvam said the Tamil Nadu conveys its 'in principle' consent to take over the two medical college projects of the Employees State Insurance Corporation (ESIC).
However, Panneerselvam listed out the conditions under which the state government is willing to take over the two colleges.
The ESIC has decided to exit owning and running medical colleges. The corporation has a running medical college here and one under construction in Coimbatore.
He said: "The ESI Corporation commits to bearing the entire balance capital cost of Rs.571.23 crore (both building and equipments). The recurring expenditure of the college component will be met from state funds."
According to Panneerselvam, the staff will be absorbed in the state government provided that they agree to work as per state government pay scales and regulations while their current pay would be protected.
At present, 65 percent of seats are surrendered to the state government, 15 percent to all-India quota and 20 percent for ESI employees. After take-over, the state quota should be 85 percent and the all-India quota 15 percent, Panneerselvam said.
According to him the title of land and building should be transferred to the state government as per the conditions of Medical Council of India (MCI).
Recurring expenditure of hospital will be met under the ESI pattern of reimbursement, under which 87.5 percent will be met by government of India, he said.
Panneerselvam said the project estimates stated by the ESIC for the hospital and college here (Rs.492.62 crore) and the one coming up in Coimbatore (Rs.580.57 crore) are on the very high side.
The ESIC had indicated to the state government to provide a total of Rs.571.23 crore (Rs.376.42 crore for Chennai project and Rs.194.81 crore for the Coimbatore project) as balance of liabilities for these ongoing projects.
Panneerselvam said it costs the Tamil Nadu government only around Rs.200 crore to set up a medical college and hospital, and even for the medical colleges funded by the central government, the project cost has been indicated as Rs.189 crore only.
