Punjab’s disagreement with the Union government regarding the branding of Ayushman Bharat Health and Wellness Centres, now renamed as ‘AAP clinics’ by the Aam Aadmi Party-led State government, has escalated further. The consequences are steep. Initially withholding Rs 621 crore in National Health Mission grants, the Union government has now escalated by threatening to withhold over Rs 1,800 crore under a separate scheme unless Punjab conforms to its branding regulations.
The Ayushman Bharat Health and Wellness Centre scheme, a centrally sponsored one funded by both the Centre and the State in a 60:40 ratio, lies at the core of this dispute.
Punjab’s Chief Secretary, Anurag Verma, addressed that, affirming the state’s efforts in resolving this issue with the Union government. He emphasized that the withheld capital expenditure funds are entirely unrelated to the Ayushman Bharat scheme. The rift intensified after Punjab submitted a proposal for 103 projects, seeking a special assistance loan of Rs 1,837 crore against its Rs 1,807 crore allocation under the Special Assistance to States Scheme for Capital Investment 2023-24. However, the Union Ministry of Finance intervened, indicating a firm stance: unless Punjab complies with mandatory conditions on CSS branding and nomenclature, funds won’t be released.
A letter dated November 23 highlighted Punjab’s “undertaking” made on July 5, 2023, ensuring full compliance with CSS branding guidelines. Yet, the Union Ministry of Health and Family Welfare flagged “violations” concerning the Ayushman Bharat centers.
The Union Finance Ministry underscored that Punjab had been previously notified about these “branding violations” and urged rectification, demanding a compliance report by September. Failure to adhere jeopardizes consideration of capital investment proposals under a scheme offering interest-free loans up to Rs 1.3 lakh crore to boost state capital spending in 2023-24.
Balbir Singh, Punjab’s Health and Family Welfare Minister, recently highlighted that the Union government ceased grants under the Ayushman Scheme in December 2022, leading to pending funds worth Rs 621 crore.
