Bhubaneswar: The public works department has cancelled tender for the proposed conversion of the Capital Hospital into a full-fledged postgraduate institute of medical sciences.

Sources said there were flaws in the tender document, for which the works department had got less takers for the project. Therefore, in view of the inadequate number of bids from potential executors, the department has cancelled the tender.

In an official communication, works department's under secretary A. Khatua intimated to the department's chief engineer (civil) S.R. Sethi that the government had cancelled the tender on turnkey basis. "Fresh tender may be invited for the construction," reads the communication.

Officials are in the process to float a fresh tender after the cancellation. "The tender had been floated earlier this year. But during the pre-bid meeting, the bidders pointed out some flaws in it. Our officials are working to fix it. Once it is done, a fresh tender will be floated," said an official.

The government has decided to convert the hospital into a postgraduate institute in 2013. However, the ground-level work, including preparation of the tender documents and land acquisition for the project, had started in 2016. In the process, the project cost rose to Rs 160 crore from the initially fixed Rs 82.62 crore.

"The government had made a budgetary provision for the project in 2013. But later when we came up with the design and the roadmap to execute the work, we proposed a revised cost of Rs 160 crore, which is the present amount to be spent for the proposed conversion," said the official, adding that the project would take two years to complete.

The hospital administration had identified some old dilapidated government quarters just behind its campus to be demolished for the required land. The administration vacated those earlier this month. There is a need of 25 acres for the project, of which 20 acres is available. "We are almost done with land acquisition. We need five acres of additional land, a problem earlier. But now, we have identified certain patches to be acquired for the project. Land is not an issue here. We also want to hire some expert agency to take up the project, for which we will hold an investor's meet in Hyderbad," said a health department official.

Once converted, the institution will cater to the health care need of about 5,000 patients a day compared to the present 2,000. "The Capital Hospital is one of the premier health care institutions of the city having a number of good facilities. It has the potential to treat more patients. It should be upgraded accordingly," said Shiraj Ahmad, a patient attendant.