Aiming to end its protracted standoff with the BJP-ruled Centre over the funding of the Aam Aadmi Clinics (AACs) in Punjab, the Bhagwant Mann-led AAP government has agreed to rebrand about half of these AACs in the state as the Ayushman Bharat Health and Wellness Centres (HWCs) or Ayushman Arogya Kendras.

As part of its agreement with the Centre, the AAP government would remove the pictures of Chief Minister Mann and the party’s signature yellow colour from the facades of about half of the total 881 AACs across the state. Digging in its heels earlier, the Mann government had declined to change its branding of these health clinics funded under the National Health Mission (NHM) in the ratio of 60:40 (Centre:state).

In the run-up to the February 2022 Punjab Assembly elections, the Arvind Kejriwal-led AAP made various poll promises to the voters, which included its pledge to set up Mohalla Clinics on the lines of the ones established by the party-led government in Delhi.

After sweeping Punjab in the polls and storming to power, the AAP government led by Mann started setting up Mohalla Clinics, which involved the renaming of several HWCs as the AACs marked with yellow paint and the CM’s image.

The Centre raised its objection to these AACs, stating that since a number of these clinics were funded by it under the NHM the state government would have to adopt the name, branding and design of the HWCs with its Ayushman Bharat tag.

The Mann government said that the Centre withheld from the state Rs 650 crore fund under the NHM for 2022-23 as it did not give in to the latter’s demand. The tussle continued with the AAP dispensation sticking to its position which, it said, led to the Centre also withholding Rs 550 crore

fund under the NHM for the current fiscal. It claimed that the central government has also stopped its special assistance to Punjab for various development projects to the tune of Rs 2,000 crore over the last two years.

The Mann government recently announced that it has now resolved its differences with the Centre over the health clinics issue following which, it said, the Centre would resume its NHM funding to the state.

Punjab Health Minister Balbir Singh told The Indian Express, “We have worked out a middle path. We will go in for co-branding with the Centre. We will name 400 clinics as Ayushman Arogya Kendras, which will have the branding and facade as per the Centre’s directions. And the remaining clinics would continue to be AACs.”

Balbir said there are several such clinics based in the state government’s facilities, which are run under the NHM scheme. “These would have co-branding with the Centre,” he said. “There is also a number of clinics which our government has set up in various new centres including dharamshalas, portable cabins, or suvidha centres. These centres would have our branding and design.”

The Health Minister also said, “This is the consensus formula which we have reached with the Centre. They have agreed to give us Rs 600 crore under the NHM for the current fiscal. We are also taking up with the Centre the issue over the funds due to us for the last fiscal.”

The Mann government has been reeling from mounting debts. The state has a revenue deficit of Rs 23,198 crore in its budget for the current fiscal. Its fiscal health has especially been hit by the state’s huge power subsidy worth over Rs 20,000 crore per annum on account of free electricity given to the agriculture sector and up to 300 units to the domestic sector.

A measure of the AAP government’s financial crisis could be gauged from the point that it delayed payment of salaries to its staff in September.

A senior government official said the AAP dispensation was forced to change its stance and reach a consensus with the Centre over the health clinics as it could not afford to forgo the NHM and special assistance funds.

Even salaries of a section of the health department officials are paid from the NHM money, he said.

“It was discussed in our several meetings that we should retreat. The CM knew that his picture would have to go. He agreed on this for the sake of funds. Now, we will have about 400 clinics named after the Centre’s scheme and the rest would remain AACs. The Centre is also withholding Rs 6,767 crore under Rural Development Fund (RDF). About Rs 1200 core would be added to this amount after the completion of the current paddy procurement season.” the official said.

The Mann government also recently agreed to implement the Pradhan Mantri Schools for Rising India (PM-SHRI) scheme, meant for upgradation of government schools, in the wake of a long face-off with the Centre.

As many as 233 government schools in Punjab would now be renamed with the PM-SHRI prefix.

Punjab is also likely to get Rs 500 crore under the Centre’s Samagra Shiksha programme which supports the implementation of the National Education Policy (NEP) 2020. These funds were withheld by the Centre as the state had refused to name these schools after PM-SHRI.

In the first phase, 233 schools have been earmarked for upgradation under the PM-SHRI scheme. The Mann government is now awaiting for the first instalment of central grants to kickstart it.