‘Reduce FAR-increase rates for hospitals run by charitable trusts’

The secretary general of ASSOCHAM,D S Rawat,has written to Minister of Urban Development Kamal Nath requesting reduction in rates for increasing floor area ratio (FAR) in Delhi hospitals. According to a notification issued by the ministry dated July 12,2005,the limit on FAR of hospitals in Delhi was increased from 100 to 200. This was considered a step forward to maximise utilisation of scarce land resources and to make quality healthcare affordable.

However,in his letter,Rawat has written that the rates to be applied for conversion of FAR are not economically viable for any charitable society or trust running a hospital. They would not be able to pay the additional amount. The letter states: “At present,about 50 hospitals run by various charitable societies and trusts in Delhi have been allotted land at concessional rates by the DDA and are affected by DDA’s notification dated December 23,2008 for fixation of rates to be applied for conversion of FAR from 100 to 200… these charitable hospitals are not for profit and provide total healthcare to a large number of people below poverty line. It is also not possible for them to pass on the increase in the cost of running such hospitals… to other paying patients.’’

ASSOCHAM has asked for these rates be made realistic and that the societies be permitted to use additional FAR at reduced rates. Also,wrote Rawat in the letter,the additional FAR should be given free of cost to societies given income tax exemptions.