IFC to infuse Rs 300 crore in Max Healthcare

New Delhi, July 9 (UNI) International Finance Corporation, a member of the World Bank Group today said it will invest Rs 300 crore through a combination of common and preferred equity in Max Healthcare Institute over the next four years.

IFC's three billion rupee-investment will include Rs 50 crore of common equity and Rs 250 crore of preferred, cumulative and redeemable equity, a statement said.

The proposed investment will increase 452 beds from the existing 765 bed-capacity, which includes 268 beds to the Patparganj hospital, a new 100-bed secondary and tertiary hospital in Dehradun, and a new 84-bed tertiary hospital focused on obstetrics, gynecology and pediatrics at Saket, Delhi.

''While the government is focusing its resources on increasing services to rural areas, it is critical for the private sector to complement the public sector by expanding access to meet the demand,'' IFC Director (Health and Education) Guy Ellena said.

''IFC's investment will help us realise our vision of emerging as one of India's leading health care providers,'' Max India Ltd Chairman Analjit Singh said.

As incomes rise in India, demand for high-quality health care is also increasing. According to the World Health Organization and the Confederation of Indian Industries, the private sector is crucial to the provision of health care in the country and will account for 75 percent of all health care expenditure after investment by the government and other agencies.

''IFC's proposed investment is aligned with our strategy to invest in health care, one of India's largest service industries.

By providing long-term, local currency financing, we are further developing a market for private health care facilities,'' said IFC Director (South Asia) Paolo M Martelli.

Creating an adequate hospital infrastructure will require 34 billion dollars in private investment by 2012 in secondary and tertiary care hospitals, medical colleges, nursing schools, and hospital management schools, the statement added.

IFC is a member of the World Bank Group. It finances and provides advice for private sector ventures and projects in developing countries in partnership.

UNI