Jammu & Kashmir Health Care Investment Policy: All You Need to Know

The Jammu and Kashmir State Administrative Council (SAC) recently has approved the ‘State Health Care Investment Policy-2019’ aimed at promoting private parties and entrepreneurs to set up healthcare infrastructure in the state.

The policy is expected to improve accessibility of quality healthcare services to the people, promote establishment of hospital, medical and allied educational infrastructure and establish the state as a destination of choice for private healthcare service providers, besides promoting medical tourism.healthcare business

Here are some useful points you should know about State Health Care Investment Policy-2019 :

  1. 30% subsidy on capital investment to be provided for setting up of Multi Specialty Hospitals, Super Specialty Hospitals, Medical Colleges, Nursing Colleges and Paramedical Colleges.
  2. The subsidy on Capital Investment will be limited to a maximum of Rs 3 crore in cities with population less than 10 lakh and a maximum of Rs 5 crore in cities with a population of more than 10 lakh as per 2011 census.
  3. Provide interest subsidy at the rate of 5% per annum on term loan subject to a ceiling of Rs 15 lakh per year for a period of five years from the date of operationalization of the project.
  4. Subsidized power tariff rates as applicable to the Industries Sector; provide 100% subsidy on purchase and installation of DG sets with upper ceiling of Rs 45 lakh.
  5. One time subsidy up to 25% of the cost incurred on induction training of nursing and paramedical staff will be provided by the State Government, capped at a maximum of Rs 12,000 per person; promoters/investors setting up the project shall be free to establish the unit on their own property/acquired land subject to eligibility of the same as per defined land use.
  6. Allotment of land at premium rates as applicable under Industrial Policy of 2016 through land bank to be created through SIDCO & SICOP.
  7. The policy provides that for Multi/Super Specialty Hospitals to be set up outside Municipal Corporation limits, land up to 5 acres for 200 bedded hospitals and upto 10 acres for 500 bedded hospitals will be provided subject to the availability of land.
  8. The minimum capital investment required is Rs 80 crore for 200 bedded hospitals and Rs 200 crore for 500 bedded hospitals, within a period of five years. The Medical Colleges being set up outside Municipal Corporation limits will be provided land upto 25 acres at a token premium of Rs 1 per kanal, subject to the availability of land. Minimum Capital investment required will be Rs 200 crore to be made within a period of five years. Single window clearance mechanism will be adopted for processing the project proposals with final approval to be accorded by Apex Level Project Clearance Committee (ALPCC).
  9. Under the Policy, Government may declare a well defined geographical area as ‘Medical City’ for having potential and being conducive for development and promoting medical tourism in the state.

Read also: Jammu & Kashmir Startup Policy: 5 Things to know

It is noteworthy to mention that private healthcare sector in the State has not come up like in other States with around 80% of the healthcare facilities being provided by the public sector. In the absence of private sector, there is huge rush of patients in the Government institutions which affects the quality of patient care available. There are many Primary Health Centres (PHCs) and Sub Centres functioning from rented buildings with some being under staffed. As per the Indian Public Health Standards (IPHS) norms, J&K still requires 69 new community Health Centres, 222 PHCs and 1396 Sub Centres. Even for implementation of Ayushmaan Bharat, Hospitals, Nursing Homes would be required in private sector for its implementation.

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