Medanta Hospital has been selected to start a super-speciality hospital in place of Jai Prabha Hospital's seven-acre plot on a public-private partnership mode.

The health department finalised Medanta, one of the country's largest super-speciality hospital chains, on Thursday after evaluating the financial bid of the global tender .

A senior health department official said: "Medanta would be awarded the tender. Few formalities remain. The empowered committee of the state government has to give a go-ahead. After that, we would put the proposal before the cabinet to get final clearance."

Pankaj Sinha, investment officer, International Finance Corporation (consultant for the project) , said: "Medanta would be given the eight-acre Jai Prabha Hospital plot on 33-years lease and each year it would have to pay the government Rs 3 crore as rent. After 33 years, Medanta would hand over the hospital to the government." Medanta has to develop a 500-bed super-speciality hospital where BPL families would be provided subsidised treatment.

Medanta was the highest bidder and Apollo, another chain of super-speciality hospitals, second highest. Others who showed interest included Asian Institute of Medical Sciences (Faridabad-based), Glocal Healthcare Systems Private Limited (Calcutta-based), Narayan Hrudayalaya (Bangalore-based) and Abengoa (a Spanish multi-national company and the sister concern of Teyma India).

Sunil Kumar Singh, member, body of governors at Indira Gandhi Institute of Medical Sciences and vice-president of Indian Medical Association, said: "Bihar has definitely made its brand image. That is why big names like Medanta are coming to the state. But former president of Bihar Health Services Association, Ajay Kumar, said the state should first improve the condition of state-run hospitals.