The Tamil Nadu government has approached the National Bank for Agriculture and Rural Development (NABARD) for financial assistance to set up a string of Health sub centers (HSCs), Primary Healthcare Centres (PHCs), taluk and non taluk hospitals in the state. It is for the first time that NABARD has come forward to provide financial assistance for the health sector.

An agreement has also been reached between the state government and NABARD for extending financial assistance to the tune of Rs.18 crores for establishing 300 HSCs in the state. The financial assistance, according to sources, would be disbursed in installments depending on the pace of the establishment of these HSCs.

It can be recalled that the Tamil Nadu as part of its reoriented healthcare strategy has laid emphasis on HSCs in addition to the PHCs. The HSCs were to act as the primary referral centers displacing the PHCs in this regard following the TN government's decision to upgrade some of the PHCs into a fully upgraded taluk and non-taluk hospitals. According to the reoriented health care strategy, the HSCs were to provide the initial support to the PHCs. The Tamil Nadu has already firmed up plans to upgrade 20 PHCs to 30 bedded hospitals.

The HSCs were to be constructed in the rural areas including some of the remotest part where PHCs could not be established. Following this, the HSCs assume importance since it would take away most of the burden on the PHCs that they are currently burdened with.

The Tamil Nadu government is going ahead with the construction of the HSCs inspite of vociferous agitations against the same by sections of government doctors employed at the PHCs. These doctors have claimed that the HSCs would not serve any purpose, and also have claimed that some of the existing HSCs remained unutilized or under-utilised such that construction of new HSCs would only wither away the importance of HSCs and lead to unnecessary financial drain.

The Tamil Nadu government as part of its master plan to correct imbalance between rural and urban areas in terms of PHCs has decided to establish one PHC for every 1 lakh population in six corporations and 102 municipalities in the state.

In the meanwhile, the state government is still to respond to NABARD's interest in promotion of medicinal plant cultivation in Tamil Nadu. It can be recalled, NABARD, while evincing interest in the promotion had asked the state government to identify 15 medicinal plants and herbs in various parts of the state so that financial assistance could be arranged by it for mass cultivation of the same.

It is for the first time that NABARD has shown interest in extending financial assistance for cultivation of medicinal plants. The Apex bank for agricultural refinance has been extending re-finance schemes for states to promote cultivation of agricultural products mainly intended for exports. However, with the setting of the Medicinal Plant Board at mainly intended for exports. However, with the setting of the Medicinal Plant Board at the Centre and its estimation that exports of medicinal plants could touch Rs. 4000 crores if concerted efforts were initiated for the same has actually made NABARD look at medicinal plants for re-financing though it has no schemes at present targeting the same.

No official response could be elicited on the delay in the state government's response but officials claimed that the delay was due to the ongoing standardization process on medicinal plants and that once the process was over the details of identified plants along with the standardization process could be submitted to NABARD for further proceedings.

NABARD officials had claimed that the bank would not extend financial assistance to the state government on the basis of identification of the medicinal plants that could be cultivated in the state. Officials contended that the state government while identifying the plants must also come out with the proper details of the standardization of the plants.