Caesarean deliveries: Private Hospitals will have to take clearance under Modicare

"Caesarean sections will only be allowed in private hospitals under the scheme after they are referred there from public hospitals specifying the reasons, which could be bed or human resource shortage or other issues," Bhushan said.

A caesarean surgery is used for delivery when normal vaginal delivery poses a medical risk to the mother or the child.

"According to WHO, the ideal rate of C-section is 10-15 percent for a country, but in India, caesarean deliveries have become rampant especially in private hospitals indicating commercialization of deliveries," Bhushan said.

The base rate of C-sections under the scheme have been fixed at Rs 9,000.

According to the National Family Health Survey-4 (2015-16) data released by the Union health ministry in May last year, private hospitals carried out 40.9 percent of caesarean sections as compared to 11.9 percent performed in government health institutions.

The Centre has included 1,354 packages in the scheme and rates for over 20 specialties, including orthopaedics, cardiology, cancer and neurosurgery are included in the package.

The rates of packages have been finalised after analysing the Rashtriya Swasthya Bima Yojana (RSBY) and CGHS rates and are on an average 15-20 percent lower than that of CGHS, Bhushan had said.