Punjab could lose ₹1,800 crore in capex funds due to re-branding Ayushman Bharat wellness centres as ‘AAP clinics’
The Hindu
Punjab set to suffer Rs 1,800cr financial jolt due to non-compliance of branding guidelines of Centrally Sponsored Schemes. Union Finance Ministry has refused to release funds until Punjab rectifies violations. Other states like Haryana, Himachal Pradesh & Rajasthan have been approved for capital investment proposals. Punjab Health Minister claims Centre has withheld Rs 621cr grants under Ayushman Scheme since Dec 2022.
Punjab’s tussle with the Union government over the branding of Ayushman Bharat Health and Wellness Centres, which the Aam Aadmi Party-led State government has renamed as ‘AAP clinics’, has become even costlier. Already, the Union government has withheld National Health Mission grants to the State to the tune of ₹621 crore; it has now said it will withhold more than ₹1,800 crore under a scheme to provide capital investment assistance to States unless Punjab is prepared to comply with its branding rules.
The Ayushman Bharat Health and Wellness Centre scheme is a centrally sponsored scheme (CSS), meaning that it is funded by both Centre and State in a 60:40 ratio.
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After the Punjab government submitted a proposal for 103 different projects, seeking a special assistance loan of ₹1,837 crore against its allocation of ₹1,807 crore under the Special Assistance to States Scheme for Capital Investment 2023-24, the Union Ministry of Finance has written to the State Finance department, making it clear that until Punjab complies with mandatory conditions on CSS branding and naming, the release of funds will not be considered.
The November 23 letter points out that the Punjab government had provided an “undertaking” on July 5, 2023, regarding full compliance with CSS branding guidelines. However, the Union Ministry of Health and Family Welfare has reported a “violation” of these guidelines with respect to the Ayushman Bharat centres.
Also Read | Punjab’s Aam Aadmi Clinics threaten rural health services
The Union Finance Ministry also noted that the Punjab government had already been informed about the “branding violations” and asked to rectify them and send a compliance report in September, failing which its capital investment proposals would not be considered. The scheme offers State governments a 50-year interest-free loan up to ₹1.3 lakh crore during 2023-24 in a bid to provide a boost capital spending by States.
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