Bhubaneswar: The Odisha government on Wednesday terminated a memorandum of understanding (MoU) signed with Vedanta Ltd for construction of teaching hospital for the medical college at Bhawanipatna, Kalahandi and roped in the State Works Department to finish the project.
The pact which was signed between the state government and Vedanta in 2018, has been cancelled with immediate effect due to inordinate delay in execution of the project by M/s Vedanta Ltd, the State health department said.
The health department has requested the Works Department to take over the execution of the teaching hospital.
“The Works Department may execute the balance work for completion of 650 bedded teaching hospital as required under the guidelines of NMC (National Medical Commission) for establishment of Kalahandi Medical College and Hospital,” the health department said.
“The estimate of the balance work be sent to this department for administrative approval and allocation of fund for the purpose,” Health Department Joint Secretary Prakash Chandra Mohanty stated in the letter.
It is pertinent to mention here that the MoU for the establishment of 100-seat medical college and 500-bed hospital was signed on March 27, 2018 in the presence of Chief Minister Naveen Patnaik.
As per the agreement, a total of Rs 350 crore was to be invested for setting up the proposed medical college, of which Vedanta was supposed to spend around Rs 100 crore. The construction of the teaching hospital was expected to be completed in two years.