The Maharashtra government's plan to transform Gokuldas Tejpal Hospital into a world class super speciality hospital in a joint venture with Wockhardt Ltd is in a stalemate with no indication of its immediate commissioning.

The project has hit a road block over a letter the state government claims to have written to the company regarding the infusion of equity into the ambitious project. While the government says the letter was dispatched in early August, the company says it has not received any so far.

A highly placed state health department source told Pharmabiz.com that the project has not progressed as the private sector partner was not willing to discuss certain issues.

The erstwhile ten-storey structure located in the state-run GT Hospital complex was to be converted into the world class, 250-bedded hospital and managed entirely by Wockhardt. If set up, it will be in a position to offer stiff competition to the upper class Bombay Hospital due to its sheer proximity and prime location in the island city.

Negotiations were held between the two partners and the World Bank in respect of infusion of equity and the management of the hospital, 10 per cent beds of which would be kept aside for free treatment for the poor.

Pharmabiz.com reported in August that the state government had written to Wockhardt to explain how they were planning to infuse the equity for the project. The government was expecting a response to the letter, which has not yet reached the addressee.

When contacted, a senior official at Wockhardt said the company has received no letter from the government so far. "Whoever is saying, this is misleading you. We have not received any letter so far. This official is not aware of the discussions already on", the official said.

The Wockhardt official admitted that there were certain issues and they were in the process of ironing them out. He said Wockhardt was ready with its cheque for the equity stake from day one. The government official says this cheque will not be accepted unless they sort out the issues. The government official refused to elaborate.

Wockhardt had last written to the government in April this year after which the current discussions started. Wockhardt was to hold 51% of the joint venture equity and the Maharashtra government with the funding assistance of the World Bank will hold 49%. This was to be a unique tie-up of 'Wockhardt-Government-World Bank'. The company says the position of the project will become clear in a week after which they would be able to offer a comment.

The hospital was to be called the Wockhardt Super Specialty Hospital & Research Centre, with state-of-the-art surgical and medicare facilities. Wockhardt says it can still commission the hospital in 15 months time, the same as that they took to set up the Wockhardt Heart Hospital in Mulund.

It may be recalled that the agreement was signed on May 10, 2001 by Wockhardt's Chairman Habil F Khorakiwala with the Government of Maharashtra in the presence of Chief Minister Vilasrao Deshmukh, Deputy Chief Minister Chhagan Bhujpal, Minister for Public Health and Medical Education Digvijay Khanvilkar and Minister of State for Public Health and Medical Education Eknath Gaikwad.

The hospital is expected to provide excellence in the fields of cardiology, neurology and urology.