BEST pulls the plug on subsidy to `charitable’ hospitals

Sharma says: “I came across a case where a patient who was treated in one of these hospitals that had to pay a hefty bill. When I inquired, they made it clear that there was no provision to charge reduced rates for such patients.” Sharma has consistently been advocating that the subsidy be scrapped but to no avail till now.

The decision to introduce the power subsidy, which was taken on July 15, 1997, covered all hospitals controlled by public trusts, religious or charitable institutions registered with the Charity Commissioner under the Public Trust Act. This also exempted them from paying the General Tax levied by the Briahnmumbai Municipal Corporation (BMC) while bringing them under the purview of the BEST’s S N Tariff. The tariff grants power at a heavily subsidised rate.

“The BEST administration had decided to introduce the S N Tariff, reasoning that since the BMC had exempted these hospitals from General Tax, the BEST too should grant the power subsidy,” explains a source in the BEST. BEST General Manager Rahul Ashthana said he did not want to comment on the subsidy as the decision had been taken by his predecessor.

He says: “The S N Tariff scheme will however continue as there are hospitals that receive exemption from General Tax and are thus eligible for the power subsidy.”

Sharma says the 14 hospitals will be charged regular rates with retrospective effect from April 1, 1999. “The BEST will earn Rs 8 crore for the power consumed over the last two years,” he adds.