The High Court has once again declined to halt the state government's proposal to construct and operate ten new medical colleges and hospitals under the Public Private Partnership (PPP) model. The court explained that it cannot grant interim orders to suspend the tender process or disallow the transfer of project rights to private players. It stated that policy choices such as adopting the PPP model are within the purview of the government and judicial intervention should be restricted unless and until there is a finding of illegality.
The court made it clear that the court cannot intervene during the process of tendering. It stressed consideration of the reasons for the decision of the government and consideration of both the pros and cons of applying the PPP model. The judges noted the tender is yet to take off and investors will not invest big amounts of money right away. The court assured it would consider everything after the state government files its counter affidavit. It gave the government more time and adjourned the case for four weeks.
The order has been handed down on Wednesday by a division bench that consists of Chief Justice Dheeraj Singh Thakur and Justice Challa Gunaranjan.
The case had its origin in a Public Interest Litigation (PIL) moved by Dr. Kurra Vasundhara from Tadepalli, Guntur district. The petition questioned Government Order (GO) No. 590, dated September 9, sanctioning the construction of ten medical colleges and hospitals at Adoni, Madanapalle, Markapuram, Pulivendula, Penugonda, Palakollu, Amalapuram, Narsipatnam, Bapatla, and Parvathipuram under the PPP scheme.
Earlier, at a hearing, the bench had asked why medical colleges could not be set up through public-private partnerships. The case was heard again on Wednesday. Senior advocate Sriram and advocate Ashok Ram appeared for the petitioner. They pleaded that using the PPP model would limit access to free medical treatment for economically weaker sections. They sought an interim order against private players from acquiring construction or operational rights for the proposed medical colleges and hospitals.
The bench asked for the number of medical colleges being constructed, their status, and estimated expenditure. Special Government Pleader (SGP) S. Pranathi told the court that among the total 17 proposed medical colleges, construction at Pulivendula is completed to the tune of 80 percent. However, National Medical Commission (NMC) seats have not been filled as there is no attached hospital.
She also claimed that building work at the other colleges is only 20-30 percent done. Each of the medical colleges and their hospitals is estimated to cost about ₹500 crore, and this puts the total estimated cost for 17 colleges at about ₹8,500 crore.
