Delhi Cabinet approves Delhi Healthcare Corporate set up

The Delhi Cabinet has recently approved the setting up of Delhi Health Corporate (DHC) public limited unit which will strive to serve as a central support service system to the Health Department.

The final decision has been taken under the chairmanship of Delhi Chief Minister. The main purpose of the new company has been discussed during a cabinet meeting; set with an objective to make available non-clinical services like generic drugs, equipments, quality sanitation services, etc on a 24 x 7 basis to the residents of the national capital. The proposal was based on the recommendation by the Delhi Dialogue Commission.

As further reported by a website, salient features of the proposed DHC are as follows :

1. The Authorized share capital of DHC will be Rs. 5 Crore (5,00,000 shares of 100 each)


2. The initial Paid up share capital of DHC will be Rs. 5 Crore. (5,00,000 shares of 100 each).


3. Department of Health and Family Welfare will enter into a MOU/contract agreement with the corporation (DHC) to perform different services on behalf of Department of Health & Family Welfare for a specific consideration with Service Level Agreements and Penalties.


4. The administrative expenditure of the corporation shall be met by charging for the services rendered at a rate not exceeding 5% on the value of works executed successfully. All the internal costs of the corporation shall at no point of time exceed the above criteria. This will form part of AOA. This will make the corporation financially viable. The MD/CEO of the Company will be a full time officer without additional responsibilities.