In a major jolt to Odisha government, Narayana Hrudayalaya Limited (NHL) on Wednesday announced to back-out from its 1000-bed cardiac hospital project in the city. In a letter to the National Stock Exchange of India Limited, (NSE) the group announced to ‘discontinue’ the project.
“NHL was allotted a land measuring 5.937 acres on 90 years lease in Dumuduma, Bhubaneswar by Odisha government in 2009 for setting up a hospital. NHL was confident of setting up a hospital on the allotted land in Bhubaneswar and was in initial stage of procuring the necessary approvals. But in 2012, a multi-speciality hospital by another promoter was commissioned in close vicinity to the allotted land which adversely impacted the project’s financial viability. Taking this into consideration, the company has decided to discontinue the project and thus surrender the above said land to the state government, subject to the refund of the consideration paid for the lease of the land,” reads NHL’s letter to the NSE.
However, officers in Odisha government alleged it as a ‘plea’ to pull-out the project and said the company was never keen on setting up the hospital.
“General administration department has issued several notices to the company threatening to scrap the lease of the land as it sat over the project for more than eight years since it was allotted in 2009. As per the lease the hospital was supposed to complete the construction within three years,” said additional health secretary Surjit Dash.
Dash further added that “NHL is a super-specialty cardiac hospital and its financial prospects should not be affected by any other hospital. Moreover there is no exclusive cardiac hospital in the state. So it is clearly a plea to close the project.”
Sources said, the GA department had issued show cause notices to NHL in 2012 and 2014 for not starting the project. Even the department had initiated process for reclaiming the land in 2014.
This is one of the major pull-outs of mega projects in Odisha following the steel giants like POSCO and Arcelor Mittal.
Courtesy: Times of India