Lok Sabha Question No. 3644 (UNSTARRED), answered on 2015-12-21
Subject: Handing over of ESIC Medical Colleges
Ministry: LABOUR AND EMPLOYMENT
Asked by: SURESH KODIKUNNIL

## LOK SABHA

## UNSTARRED QUESTION NO. 3644 TO BE ANSWERED ON 21.12.2015

## HANDING OVER OF ESIC MEDICAL COLLEGES

3644. SHRI KODIKUNNIL SURESH:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether  the  Government  proposes  to  handover  Employees  State Insurance  Corporation  (ESIC)  hospitals/medical  colleges  to  State Governments and if so,  the  details  and  number  of  such  hospitals/ medical colleges handed over to State Governments, State/UT-wise including Kerala at present;
- (b)the  general  conditions  and  terms  between  the  ESIC  and  various
- States/UTs including Kerala in this regard; and
- (c)whether the employees are entitled for protection of their service, pay,  allowances and if so,  the  directions  given  by  the  ESIC  to  State Governments  for  ensuring  the  service  of  faculties  and  employees  of ESIC?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a): Yes, Madam. The Government has decided to hand over certain Employees State Insurance Corporation (ESIC) Medical Colleges along with associated Hospitals to willing State Governments. The status of Medical Colleges proposed to be handed over to the concerned State Governments,  including Kerala is detailed at Annexure-I.
- (b) & (c): The  broad  terms  and  conditions  of  the  Memorandum  of Understanding (MoU) for execution between the ESIC and the concerned  State  Governments  are  enclosed  at  Annexure-II.  It  takes care of service conditions of employees also.

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## ANNEXURE -I

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  OF  LOK  SABHA    UNSTARRED QUESTION NO. 3644 FOR 21.12.2015 BY SHRI KODIKUNNIL SURESH REGARDING HANDING OVER OF ESIC MEDICAL COLLEGES.

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## TAKEOVER OF ESIC MEDICAL COLLEGES BY STATE GOVERNMENTS

|   Sl. No. | Location                | Status                                                                                                                                                                                                                                                                      |
|-----------|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Coimbatore, Tamil Nadu  | The State Government had requested slight revision in the Memorandum of Understanding ( MoU) sent earlier for takeover of the medical college. The request of the State Government has been acceded to and revised MoU has been conveyed to State Government for execution. |
|         2 | Mandi, Himachal Pradesh | The MoU based on mutually agreed Terms and Conditions has been sent to the State Government of Himachal Pradesh for acceptance and execution.                                                                                                                               |
|         3 | Paripally, Kerala       | ESIC and the State Government have signed the MoU for transfer of ESIC Medical College and associated hospital on 09-10-2015.                                                                                                                                               |
|         4 | Bihta, Patna            | The MoU to be executed between the ESIC and the State Government for transfer of Medical College has been conveyed to the State Government for acceptance and execution.                                                                                                    |

## ANNEXURE -II

STATEMENT REFERRED TO IN REPLY TO PARTS (b) & (c) OF LOK SABHA  UNSTARRED QUESTION NO. 3644 FOR 21.12.2015 BY SHRI KODIKUNNIL SURESH REGARDING HANDING OVER OF ESIC MEDICAL COLLEGES.

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BROAD TERMS and CONDITIONS of MEMORANDUM OF UNDERSTANDING IN BRIEF

- 
- First Party - ESIC 
- Second Party - State Government

## A. TERMS & CONDITIONS -  'FIRST PARTY' IN BRIEF

1. That in consideration of sharing of revenue as mentioned in the relevant Para, the First Party agrees to demise to the Second Party and the Second Party agrees to take possession of the said  Buildings,  (more  fully  described  in  Annexure),  to  hold  the  same  for  the  purpose  of running a Medical College and Hospital, on long term lease.
2. That the First Party would complete the construction work of both the Medical College and the Hospital parts with its own resources.
3. That the equipment already procured by the First Party would be transferred on 'as is, where is' basis to the Second Party.
4. That the First Party further agrees that it will not determine the quantum or structure of fee and other charges due from the medical students and hospital charges during the period of lease. However, the tuition and other fee for wards of IPs admitted under 'ESIC management quota' shall be the same as the fee in other ESIC run medical colleges during the period of lease. The tuition fee as on date is Rs. 24,000 p.a.
5. That the land & buildings for both hospital and medical college would be made available to the Second Party for use, as being followed for ESIS institutions. The First Party would retain the ownership of the property, i.e. the entire land and the buildings constructed thereon.

## B. TERMS & CONDITIONS -  'SECOND PARTY' IN BRIEF

1. That the hospital would run as an ESI / State General hospital.
2. That all the expenses whether recurring or otherwise incurred for running the Hospital and the Medical College shall be borne by the Second Party. Fund for running the hospital would be available to the State Government under the ESI Scheme in case the hospital is run as an ESI hospital.
3. That the Second Party shall provide services to IPs (Insured Persons and their families) at this hospital consistent with those provided under the ESI Scheme, on cashless basis if hospital is run as a State General Hospital.
4. That  the  actual  procurement  of  equipment,  for  which  firm  orders  have  not  been  placed already by the First  Party,  would  be  done  by  the  Second  Party.  Any  expenditure,  including that on equipment required for MCI purpose, other than as provided under balance liability would be borne by the State Government.
5. That maintenance of the hospital and other infrastructure of the Medical College, including the residential buildings, apparatus for electrical, water, air conditioning etc, and any other type of installations/ fittings shall be maintained by the Second Party out of its own funds including all charges for Electricity and Water, etc, as per consumption during the occupation.
6. That the taxes, assessments and determination, dues and duties, including enhancements and new taxes/cess, if any, payable in respect of the said building or buildings to be constructed thereon, to the Government or the Municipal Corporation or any other local authority or public body/ statutory body etc. will be payable by the Second Party as and when they become due and payable.
7. That all the liability regarding legal proceedings, if any, or any medico legal case filed against the Hospital, whether due to its negligence/ deficiency in service or not, during the tenure of the lease shall be the responsibility of the Second Party. The Second Party shall keep the First Party  duly  indemnified  against  any  claims,  litigations  and  proceedings  on  any  account whatsoever.

## C. TERMS & CONDITIONS -  'MUTUAL' IN BRIEF

1. That  the  parties  mutually  agree  that  the  First  Party  would  bear  balance  liability  (as  on 30.9.2014)  and  the  Second  Party  agree  to  share  50%  of  the  total  revenue  from  both  the medical  college  and  hospital,  including  fees  collected  from  the  students  on  any  courses offered  in  this  institute,  with  the  First  Party  till  the  duration  of  this  MoU/  pay  the  balance liability as mutually decided.
2. That  the  Administrative/Ministerial/Medical  and  Paramedical  employees of  the  hospital  shall be  given  option  to  get  absorbed  in  the  services  of  Second  Party  as  per  the  terms  and conditions  so  laid  down  by  the  Second  Party.  Also,  the  First  Party  agrees  that  both  the teaching and non-teaching staff recruited by the First Party will be treated as on deputation, for a period mutually agreed by both the parties, so that the Second Party is able to replace them  with  staff  of  the  Second  Party,  on  the  condition  that  their  service  conditions  (pay,
3. allowance,  promotion  etc)  shall  not  be  adversely  affected  during  the  period  of  such deputation, i.e. it would be the same as applicable to similarly placed functionaries in ESIC institutions.   An option shall be given to these staff either to get absorbed in the services of the Second Party on the service conditions of the Second Party or to get repatriated to the First Party.
3. The Second party shall contribute a percentage (varying from State to State) of total seats, i.e.  all  the  management  quota  seats  as  available  to  'Non-Minority  Self  Financing'  medical colleges functioning in the State, to the pool of the First Party for admitting eligible 'Wards of IP's' on all India basis. The First Party shall surrender any unfilled seats, for want of eligible students (Wards of IPs), to the Second Party after conclusion of counselling process by the First Party.
4. That  in  case  of  any  dispute  or  difference  arising  between  the  Parties  hereto  in  any  of  the matters under this MOU or interpretation or in relation to implementation of any of the terms and  conditions  herein,  the  same  shall  be  resolved  initially  by  mutual  discussion  and conciliation. But in the event of failure thereof, the same shall be resolved through arbitration under Arbitration and Conciliation Act, 1996.

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