The Hindu Business Line : DLF-Fortis hospital venture facing delays

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DLF-Fortis hospital venture facing delays

We are discussing it but it is not going as per the timeline…It is slower than anticipated. —

Shivinder Mohan Singh

Our Bureau

New Delhi, Nov. 19 Issues seem to have cropped-up regarding DLF’s pact with Fortis Healthcare for setting-up super-speciality hospitals in DLF townships. This comes at a time when the real estate giant is facing deferment of some of its projects due to weak real estate demand.

According to Fortis, the memorandum of understanding (MoU) is moving “slower than anticipated.”

In January 2007, DLF had inked a MoU with Fortis Healthcare to own, develop, establish, operate and manage, though a joint venture company, 250-400 bed hospitals with a minimum built up area of 20,000 sq. meters.

DLF had said it would incorporate a joint venture company, where it would hold a 26 per cent share.

When contacted, Mr Shivinder Mohan Singh, CEO and MD of Fortis Healthcare, said, “We are discussing it but it is not going as per the timeline…It is slower than anticipated. However, I do not think there is a significant difference of view; the issue is that of priority.”

Sources pointed out that there has been limited progress under the MoU, and that there has been inadequate meeting ground between the two sides. “Also, while DLF has established individual residential projects, there has been a lack of large township projects,” sources said.

A DLF spokesperson, however, pointed out that the agreement pertained to setting up 15 super-speciality hospitals in DLF townships. “DLF’s commitment and understanding with Fortis is intact and we will build super-speciality hospitals in our townships,” he said.