Govt tightens rules for allocation of land for hospital projects in J&K

Move to improve healthcare infra in UT

Govind Sharma

JAMMU, Aug 26: In a significant move to enhance the healthcare infrastructure across Jammu & Kashmir, the Union Territory Government has introduced stringent new guidelines for the allocation of land for hospital projects.

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Official sources told Excelsior that new guidelines were introduced by the High-Level Land Allotment Committee of J&K in its 10th meeting held recently at the Civil Secretariat in Srinagar.
“Observing that the failure of promoters to deliver on their commitments not only results in the misuse of valuable land resources but also denies the public access to essential healthcare services, the Committee, in a bid to mitigate these risks, has introduced comprehensive criteria that applicants must meet to be considered for land allotment,” sources added.
Under the new guidelines, applicants are required to demonstrate significant technical expertise and financial stability. Specifically, they must possess a net worth of at least 30% of the project’s total cost, as verified by a Chartered Accountant, over the past three years. Furthermore, applicants must have a proven track record in managing hospital facilities that adhere to the National Health Authority’s minimum benchmark standards. This experience must include operating at least three hospitals with a minimum of 40% of the proposed bed capacity, two hospitals with at least 50% of the proposed capacity, or one hospital with 80% of the proposed capacity.
Recognizing that not all applicants may possess the required experience, the Committee outlined alternative pathways. One option allows applicants to form a consortium with an experienced partner, who must hold a minimum 26% stake in the Special Purpose Vehicle (SPV) for the first five years of the project’s operations. Alternatively, applicants can enter into a technical collaboration with a qualified entity responsible for overseeing all technical and operational aspects of the project.
Sources said that to ensure compliance, the Committee now mandates that applicants submit a ‘Letter of Comfort’ from the experienced partner at the time of application, with a binding agreement to be finalized before the land allotment is issued. They added that these new requirements are designed to build upon the criteria established in previous meetings, ensuring that land is allocated only to those with the capability and commitment to deliver high-quality healthcare facilities.
“These enhanced criteria are intended to protect public interests by ensuring that land allocated for healthcare projects is utilized effectively and contributes to the broader goal of improving healthcare access in J&K,” sources said, adding, this initiative reflects the Government’s continued commitment to strengthening healthcare infrastructure in the region, ensuring that new hospital projects are not only planned but also executed with the highest standards of quality and accountability.