Centre refuses to grant more funds to e-health programme

THIRUVANANTHAPURAM: The Centre has informed the state that it's not ready to provide more funds for its ambitious e-health programme. The project, which aims to create electronic medical records and databank at government hospitals, is a critical component of the state government's mission to revamp the healthcare sector.
With the Union department of electronics and information technology, refusing to fund the project to extend it to all the 14 districts in the state, the health department has decided to approach the Kerala Infrastructure Investment Board (KIIFB) for funds.
It has decided to submit a detailed project report and a proposal to set up a special purpose vehicle for the project.
The Central department had sanctioned Rs 96 crore in 2013 for the project. Though insiders claim that the delay in the execution of the project prompted the Centre to stop funding, authorities are of the view that the first instalment was for the pilot project.
"The first instalment of Rs 96 crore was for the pilot project. Now, officials at the Central department say they have no funds to scale up the project. The fact is that the e-health programme is an essential part of Aardram, the state's healthcare initiative. We need to find money to cover all the districts. We will have to explore other avenues for funds, such as the KIIFB," said additional chief secretary (health) Rajeev Sadanandan.
Sources said the Centre was unhappy over the project delay after it was sanctioned four years back. It was in January this year that the project was officially launched after completing field works of data collection in Thiruvananthapuram, where the pilot project was inaugurated.
According to the state health department's estimates, an additional amount of Rs 167 crore will be required for completing the project. Now, the department has decided to submit a fresh detailed project report covering all hospitals under the programme to the KIIFB.
"KIIFB provides funding based on detailed project reports. Each and every project proposals are evaluated for their cost effectiveness and internal rate of return. So, if we apply for a loan from the KIIFB, we will need to come up with a DPR and also will have to set up a special purpose vehicle,'' said Sadanandan.
It has become necessary to cover the e-health project into a not-for-profit company. Hence, the department has decided to proceed with the registration of a company to manage the e-health programme.