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Wockhardt, Maharashtra government in hospital pact

Indian healthcare group Wockhardt and the government of Maharashtra on Thursday signed a deal to create a speciality hospital in Bombay.

Wockhardt Life Sciences will invest Rs 330.7 million to pick up a 51 per cent stake in the hospital project, while the state's government, with funding from the World Bank, will hold the remaining 49 per cent.

A building located in the G T Hospital complex in south Bombay will be converted into a 250-bed hospital that specialises in cardiology, neurology and nephrology, a statement said.

Wockhardt Chairman Habil Khorakiwala told reporters at the signing of the agreement that the hospital would take 12-15 months to complete, and would break even in three or four years.

Maharasthra Chief Minister Vilasrao Deshmukh said the deal was the first step towards setting up similar ventures across the state with the assistance of the World Bank, which plans to disburse seven billion rupees to these projects.

Wockhardt won the deal through a tendering process, beating the Apollo Hospitals group, a government health official said.

Wockhardt Life Science shares were up 1.07 per cent at Rs 14.15 in afternoon trade, while the benchmark index was down 0.51 per cent.

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