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India's First PPP Medical College Collapses

An official notification said, ‘As the GENET has failed to comply with the terms and conditions of the agreements signed with the organisation and also conveyed its inability to run the medical college, the Tripura government has rescinded all agreements and lease deeds signed with GENET’. 

’An 11 member registered society headed by principal secretary health and family welfare has been formed to run the college and hospital,’ the notification added.

But what the prime causes behind the failure of the medical college are yet to be dug out. However, close associates with the college who wish to remain anonymous said that there has been huge financial corruption at different levels. The number of staff recruited was several times more than what was actually required and there were also many unnecessary posts created who were being paid huge salaries for nothing. There have even been allegations of appointments through the payment of bribes. 

Similar allegations are there in hiring of vehicles, purchase of equipment and construction materials where the amount spent was higher than the market price. 

In spite of all this, the medical college would still be sustainable if the process of admission of students with donation continues as every year; the admission of 75 students means an income in crores, the main revenue generator of the college. However, GENET failed to secure permission from the Medical Council of India (MCI) and the Government of India to admit students in the academic year 2008-09 and this was the last nail in the coffin. 

Sources said that the state government of Tripura has so far provided Rs. 250 million to GENET to run the medical college and hospital and the organisation had collected over Rs. 210 million from the students as donations but there are allegations that the money was invested in other projects of GENET which is under the Universal Empire Group that runs healthcare education in Nepal, Dubai and the West Indies.

Whatever may be the reason, the fact remains that the PPP model of private medical college did not work out and this is for the second time that a private medical college (earlier Baba Mungiappa Medical College) had failed in the state. Hence it may be conclude that the government should think twice before giving responsibility to anyone and entering partnerships in vital sectors like health and education on which the future of any nation depends.

Pinaki Das