Delhi govt planning SPV to procure drugs, medical equipment

Taking a cue from Tamil Nadu, the Delhi government is contemplating setting up a Special Purpose Vehicle for procuring quality drugs, consumables and equipment for various city hospitals.

NEW DELHI: Taking a cue from Tamil Nadu, the Delhi government is contemplating setting up a Special Purpose Vehicle for procuring quality drugs, consumables and equipment for various city hospitals.

In a meeting held yesterday, the Delhi Cabinet gave the green signal to a proposal of Health department to create the Delhi Medical Supplies Corporation Limited (DMSCL) as a SPV on the lines of the Tamil Nadu Medical Supplies Corporation Ltd (TNMSCL), as a medium-term measure to ensure timely and better supplies of medical items.

For long term measures, the Cabinet has decided to strengthen the existing in house procurement systems through the Central Procurement Agency under Directorate of Health Services and Equipment Procurement Cell under Health Department.

According to a senior health official, the DMSCL will be set up on the lines of TNMSCL which has been operating "successfully" in the southern state since 1994.

"During examination of the functioning of the TNMSC, we found that it is making high volume purchases on highly economic rates that are even lower than the wholesale prices prevailing in the market," said the official while recommending a similar institution in Delhi.

Moreover, the SPV is able to make timely and regular supplies of quality items, he said adding that the corporation also runs various retails outlets and CT scanners and MRI centres throughout the state and earn revenue from these activities also.
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As a result over the years, the Corporation with authorised capital of Rs 10 crore, has not only become self-sufficient but is also able to make profit, the official said.
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