Apollo seeks waiver for non-Nokia SEZ patients

Apollo Hospitals has approached the Commerce Ministry for an exemption from a rule that prohibits its proposed hospital in Nokia's SEZ in Tamil Nadu from treating patients living outside the Special Economic Zone (SEZ).

The issue would be considered by the inter-ministerial Board of Approval (BoA) on April 9, an official said.

In its request to the BoA, Apollo Hospitals, as a co-developer of Nokia SEZ has stated that the restriction on activities of its proposed 60-bed hospital "interferes with their professional medical ethics", the official said.

Besides, limiting the operations of the hospital within the Nokia and its surrounding SEZs was not commercially viable. Apollo Hospitals joined the Nokia SEZ at Sriperumbudur as a co-developer in August 2009.

The government had allowed it to partner Nokia and set up a hospital on 4,010 square meter in the non-processing area of the special economic zone.

Nokia has set up the sector specific zone for manufacturing and assembling of electronics, telecommunication, IT hardware and software.

However, setting up the hospital was allowed in the non-processing area subject to the condition that it would cater only to the patients from within the zone and adjoining SEZs and trauma cases arising of accidents on highways.

However, within four months of getting the permission, the Hospital wants a waiver of the condition.

The Apollo Hospitals units in the Nokia SEZ would be entitled for a host of tax benefits such as exemption of income tax, central sale tax and service tax.