Hospitals in the private sector are clamouring for ‘infrastructure status’ or ‘priority sector status’, even as they assure .to bridge the demand-supply gap in the number of hospital beds and bring in quality care to rural areas.

But they want government incentives.

“Healthcare sector contributes to about 6.1 per cent to the GDP, of which the government contribution is a mere 1.1 per cent. We must recognise that almost 35 per cent of hospitalized Indians fall below the poverty line and the primary reason is that public health services are overcrowded and groaning under the strain of crumbling infrastructure,” said Preetha Reddy, managing director of Apollo Hospitals.

India is short of one million beds.

“This requires a capital investment of $30 to $40 billion and it is not possible for the government alone to make such huge investment. This is why the government should give ‘infrastructure status’ to the sector or make healthcare a ‘priority sector’,” said Daljit Singh, group president of Fortis Healthcare.

An infrastructure status can provide long-term loans at soft interest rates and make land easily available at reasonable rates.

“Assistance should be given in procurement and leasing of lands at concessional rates and large scale healthcare projects should be included for financing by India Infrastructure Finance Company on long term debts,” said Reddy.

The sector seeks extension of tax holidays for 10 years for new hospital projects and seven years for existing hospitals ones.

Medical technology product manufacturers also have expectations.

“Imports of medical technology products are poised to double from Rs 10,000 crore in three to five years. The government has to incentivise local manufacturing and set up medical technology parks providing tax and duty exemptions,” said GSK Velu, president of Association of Medical Devices and Suppliers of India.