The New India Assurance Co Ltd [NIACL] has moved the Orissa High Court challenging the state government’s order unilateral cancelling a work order awarded to it to implement of health insurance scheme under the Rashtriya Swasthya Bima Yojana [RSBY] for BPL families in the districts of Khurda, Cuttack, Sambalpur, Sundargarh, Ganjam and Rayagada stating that it was arbitrary and illegal. Last month the Court issued a stay order on the opening of the financial bids and ordered the government to submit its reply this month.

The state government had initially floated tender for twelve districts in two phases for the financial year but six out of twelve districts were re-tendered to include maternity benefits. Incidentally, NIACL on both the occasions was the lowest bidder.

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