Agartala, Jan. 14: In a bid to revive the Tripura Medical College and Hospital, the Manik Sarkar government has advanced a loan of Rs 6.13 crores to the Global Education Net (GEN) authorities, who run the hospital on a public-private partnership model.

However, the hospital authorities will have to deposit a matching amount by March this year to avail of the loan.

An official source said the state government would sign a supplementary agreement with the hospital authorities, making it clear that in the event of their failure to run the institution viably, the state government will be forced to take over the reins of the institution.

A final decision in this regard was taken at a meeting of the state cabinet yesterday amid growing controversy over the role of the Kerala-based GEN authorities in running the institution.

The future of 200 students who were admitted to the college in the 2006 and 2007 has also come under a cloud because of a two-month-long strike by the employees, including doctors and nurses.

An official source here said in October 2004, the state government had signed an agreement with GEN, handing over the land, building, furniture and medical equipment of the then B.R. Ambedkar hospital for launching the new medical college and running the hospital on public-private partnership model.

The authorities were also given the power to draw bank loans by mortgaging the assets handed over to them while the state government promised a total loan of Rs 25 crore in five annual instalments.

Having put in place the essential infrastructure the authorities admitted 75 students each in 2006 and 2007. The problem started when Medical Council of India refused to extend recognition to the college. As a result, the hospital authorities failed to admit students in 2008. The institution also faced severe fundscrunch.

The authorities stopped paying salaries to the staff since October last year, prompting them to go on a strike.

“The chairman Bala Chandran Nair, visited the state twice during last month to hold discussions with the state government, but nothing has come out of it because the hospital authorities are unable to make any fresh investment on their own,” the source said.

According to the decision taken in yesterday’s cabinet meeting, the state government will strictly monitor the finances and internal administration of Tripura Medical College and Hospital.