The external assistance for different health projects in the country is on the decline and is likely to drop further after a number of corruption cases involving officials and a couple of pharma companies. The World Bank (WB) had unearthed serious cases of fraud sometime back.

The total external assistance for health projects during 2006-07 was Rs 1494.31 crore and it increased to Rs 1907.95 crore in the year of 2007-08. For the year 2008-09, the total amount grew further to Rs 2955.55 crore. However, it nosedived abysmally to Rs 532.37 crore for the current year 2009-10, according to the official records available. The schemes are finalized for every biennium and the consultations are going on for 2010-11.

The government claimed that no agency was planning to discontinue the assistance in the wake of serious lapses in the past. However, observers in the field are apprehensive that India may not get a major hike in the assistance as some of the pharma companies and the officials from the government were involved in the cases. World Bank, International Development Association, UNFPA, USAID, German government, WHO, Japan International Cooperation Agency, Department for International Development, Global Fund to Fight AIDS, TB and Malaria, European Commission and Global Alliance for Vaccine Immunisation are among the external agencies supporting the projects in the country.

In January 2008, the World Bank had unearthed serious lapses in its detailed implementation review of five healthcare projects during 1997-2006. The WB had mentioned deficiencies relating to procurement, oversight and implementation, collusion, bid rigging, and deficiency in civil works in its report. However, the health ministry contented the report saying that it had infirmities.

But over the years, government had to take action against some officials and companies, indicating that the corruption was indeed there in the projects. Government suspended business with Nestor Pharmaceuticals and Pure Pharma on charges of reported collusion while Pure Pharma was blacklisted. After Nestor Pharma filed petition in Delhi High Court, the suspension was kept in abeyance. A case was registered by CBI against Pure Pharma and Nestor Pharma while disciplinary action was taken against a few officials in the Health Ministry. Three cases pertaining to Chhattisgarh and Karnataka were referred to CBI while Orissa filed a criminal case in one of such instances, sources said.