Udupi: The State Cabinet on Wednesday decided to lease out Udupi Government Hospital to BRS Health Research Institute Private Ltd owned by NRI business tycoon BR Shetty.

The hospital has been given on lease for a period of 30 years and the new hospital should be constructed on the 3.88 acre land belonging to the government hospital. Sources say that the lease could be renewed for a further period of 30 years; however, the condition is that the company should charge as applicable in government hospitals.

A Memorandum of Understanding was signed between BR Shetty and the Department of Health, Karnataka. The foundation stone laying ceremony will be held on October 30 at 2.30 pm at Town Hall, Udupi; Chief Minister Siddaramaiah is scheduled to attend it.

At present there are 70 beds in the hospital. The new hospital building will be constructed in the next one year and will be a 400-bed super specialty hospital with Centre of Excellence and a Community Health Centre. 200 beds will be earmarked for free treatment for women and children for BPL, Universal and Health Insurance card holders at the Women and Children’s hospital and charges will be collected as per government norms. The building is said to be built on lines of Build-Operate-Execution.

The hospital will come up at KM Marg, Udupi. Apart from the hospital, employee residential quarters and Diseases Prevention and Community Health Centre will be constructed.