Andhra to terminate ambulance contract with Aurobindo group

The agreement with AEMS was signed by the Arogya Sri Trust of the state medical and health department on July 1, 2020 for operating ambulance services with toll free numbers 104 and 108

The Andhra Pradesh government is planning to terminate its contract signed with the Aurobindo Emergency Medical Services (AEMS), a group company of Aurobindo Pharma, for operating ambulance services in the state in the wake of several complaints against it, officials familiar with the matter said.

While the 108 ambulance service is meant for extending emergency medical services, 104 services are operated for extending mobile health services in the interior areas. (PTI)

An official in the state medical and health department said the Aurobindo Pharma group recently wrote to the state government agreeing to withdraw its ambulance services on the ground that there has been inordinate delay in clearing pending bills by the government.

“However, the department has already served notices to the company seeking explanation on various irregularities including lapses in extending services on time to the people and management of ambulance services,” the official said, adding that once the agreement is terminated, the government would call for fresh tenders from reputed firms.

The agreement with AEMS was signed by the Arogya Sri Trust of the state medical and health department on July 1, 2020 for operating ambulance services with toll free numbers 104 and 108. It is due for expiry in 2027.

While the 108 ambulance service is meant for extending emergency medical services, 104 services are operated for extending mobile health services in the interior areas.

The AEMS had been running 768 ambulances, including those purchased during the previous government at a cost of ₹450 crore. After the Telugu Desam Party-led NDA government came to power, it ordered probe into the complaints of various irregularities in the management of ambulance services by AEMS.

“The employees working for AEMS have not been paid salaries for several months. There were also complaints against the company in supply of medicines to the people in the rural areas through 104 ambulance services,” the official quoted above said.

During a debate on the budget for the health department in the state assembly on November 17, state health minister Y Satya Kumar Yadav said Aurobindo, which maintained the ambulance services, committed grave financial irregularities in the name of service.

“The previous government was yet to clear pending bills to the extent of ₹800 crore to Aurobindo. The present government will take a decision on payment of dues after conducting an inquiry into the allegations against it,” the minister said.

HT tried to get response from Aurobindo Pharma group but could not get any reply.