It seems the State government is advancing not just with debts but also with errors in its planning and execution. The Congress-led government has apparently submitted mere "tokens" to the Prime Minister's Office (PMO), claiming to have cleared ESI (Employees' State Insurance) bills for the past two years. You might wonder if false information is being sent even to the PMO. Well, your suspicion is correct.

Each year, the central government releases around Rs 250 crore to run ESI hospitals and dispensaries. About 80% of these funds are used to procure medicines, drugs, and surgical items, while the remaining 20% covers dispensary maintenance (like rent), contract staff salaries, and other expenses. The state government is also required to contribute its share. Using central funds, ESI facilities purchase necessary medicines, drugs, and surgicals from suppliers contracted by the central government. These suppliers deliver the items and submit bills to the state's ESI Directorate, which pays them from the central allocation. The entire process typically takes 4 to 6 weeks.

Rs 25 Crore still pending

Companies supplying medicines, drugs, and surgicals to ESI hospitals and dispensaries across the state, centered in Hyderabad, have formed the 'Twin Cities Hospitals Suppliers Association.' For the 2024 financial year, members of this association supplied items worth around Rs 25 crore to ESI. However, the government has not cleared these bills. Despite repeated appeals to officials and higher-ups, there was no response or release of payments.

Frustrated by the ongoing delays, the association wrote to Prime Minister Narendra Modi on July 1, 2024. In the letter, they explained that under the ESIC rate contract, they had supplied medicines, drugs, and surgicals to ESI hospitals and dispensaries under the Telangana government, but payments were not being made, causing significant hardship. They urged the PMO to instruct the State government accordingly. 

Upon reviewing the complaint, the PMO forwarded it to the state government, requesting remarks. Alerted by the PMO's letter, the state government responded by claiming it had cleared Rs 24,99,68,517 for approximately 229 bills. They even included the token numbers for these payments in their submission to the PMO. Each bill had its unique token number listed. This response was sent toward the end of 2024. Notably, the bills ranged from Rs 1.5 crore down to Rs 50,000.

Token gesture falls flat

However, contrary to what was reported to the PMO, the State government did not actually release the payments. They merely issued token numbers and brushed off the matter without disbursing funds. As 2024 ended and the 2025 financial year began, there was still no action from the government. After persistent follow-ups with senior officials, the process for bill payments was restarted in the new financial year. Suppliers were asked to resubmit bills, which they did in July 2025. Once again, token numbers were generated for the Rs 24.99 crore amount, but the old pattern resumed—no actual payments beyond the tokens.

Fed up, the Twin Cities Hospitals Suppliers Association wrote another letter to Prime Minister Narendra Modi on August 29. They highlighted that they had already sent letters three times, yet there was no movement from the State government. Expressing frustration, they warned that without bill clearances, they could no longer supply medicines, drugs, and surgicals. Suppliers allege that only the Telangana government could get away with such double flattery to the PMO—twice providing false information about payments that were never made. They demand that the state government explain this misleading submission to the PMO.