Delhi Government sets up Delhi Healthcare Corporation to provide centralized support on equipment + drug services and procurement

Cabinet approves creation of Delhi Healthcare Corporation  

The Delhi Cabinet, in its meeting chaired by the Chief Minister Mr Arvind Kejriwal on Tuesday(September 29) approved incorporation of a public limited company Delhi Healthcare Corporation (DHC) to provide centralised support services to Health Department like procurement of drugs, consumables, surgicals, equipments, procurement of sanitation services, security services, nursing orderlies etc.

The proposal was based on the recommendation by the Delhi Dialogue Commission, and the purpose of this corporation is to make available non-clinical services like generic drugs, equipments, quality sanitation services, etc on a 24 x 7 basis to the residents of the national capital, who go to health institutions controlled by the Delhi government for treatment.

As per the 70 point agenda which the AAP government had promised to the people of Delhi, point number 27 related to “Quality Drugs for all at affordable price: Pharmaceutical drug and equipment procurement will be centralized to ensure zero corruption. Generic, affordable and high quality drugs will be made available to the public”, for which the approval has now been given.

  1. The Authorized share capital of DHC will be Rs. 5 Crore  (5,00,000  shares of 100 each)
  2. The initial Paid up share capital of DHC will be Rs. 5 Crore.  (5,00,000 shares of 100 each).
  3. Department of Health and Family Welfare will enter into a MOU/contract agreement with the corporation (DHC) to perform different services on behalf of Department of Health & Family Welfare for a specific consideration with Service Level Agreements and Penalties.
  4. The administrative expenditure of the corporation shall be met by charging for the services rendered at a rate not exceeding 5% on the value of works executed successfully.  All the internal costs of the corporation shall at no point of time exceed the above criteria.  This will form part of AOA. This will make the corporation financially viable. The MD/CEO of the Company will be a full time officer without additional responsibilities.

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