The Vani Vilas Women and Children's Hospital in the city was renovated at a cost of Rs 4.2 crore under the Karnataka Health Systems Development Project (KHSDP) with the help of World Bank funds for upgradation of secondary health care centres.

The hospital will also receive Rs 15 lakh from the Member of Parliament's (MP) discretionary fund for setting up a radiology department and a blood bank at a total cost of Rs. 30 lakh. The remaining amount would be arranged by the government of Karnataka.

At the inauguration of the new block, which was a part of the renovation project, Ananth Kumar, Union Minister for Urban Development, said that the MP funding provided Rs.1 lakh for hospitals like NIMHANS, Victoria Hospital, Jayadeva Institute of Cardiology, Kidwai Memorial Institute of Oncology and the Indira Gandhi Centre for Child Health for repair and renovation of departments. Recently Rs. 12 lakh was disbursed to the KC General Hospital for purchase of equipment and renovation.

Dr. AB Malakaraddy, Union minister for health and family welfare, said that despite a funds crunch and plenty of criticism, the Centre recently granted Rs. 3 crore to undertake an assessment of the proposed health, nutrition and population programme. The private agencies entrusted with the work will complete it in a year. The Centre's final approval and World Bank funds would soon follow, he said.

The Karnataka Health Minister also wanted to change the system of funds allocation to the States and Departments of Health and family Welfare. The Centre's negligible allocation was released erratically, he informed.

Dr. G Parameshwara, Karnataka minister for medical education, said that government medical staff should stop offering consultancy services to private hospitals and nursing homes.