The Maharashtra government has written to the Centre saying it has taken an “in-principle” decision to join the National Health Protection Mission , a day before the much-anticipated announcement by Prime Minister Narendra Modi of the Rs 5-lakh health cover scheme in his Independence Day speech.

Maharashtra had earlier cited financial constraints following the Rs 22,000-crore farm loan waiver in joining the NDA government’s flagship health programme, which was announced in the Union budget this year and will cover 10.74 crore families across the country.

The letter paves the way for the mission to cover the entire western belt, where Mumbai is an important centre. NHPM will provide complete national portability, which is why it is important that the big medical centres be a part of it.

“Maharashtra will be the 29th state to sign a memorandum of understanding with us. It is a very prestigious state. With this we have covered the western belt. It is very important for Daman and Diu and Dadra and Nagar Haveli that Maharashtra to be part of the programme. Through portability, residents of those states can avail of medical services in the state,” said Dr Dinesh Arora, Deputy CEO of National Health Agency.

However, for the present, the state has decided to provide the Rs 5 lakh health cover to only 83 lakh people who are eligible for the benefits as per the deprivation criteria listed in the Socio-Economic Caste Census 2011.

Maharashtra’s health protection scheme has one of the widest coverages. Mahatma Jyotiba Phule Jan Arogya Yojana, the flagship health insurance scheme, provides cover of up to Rs 2 lakh for 2.2 crore of the 2.5 crore families in the state. The dilemma for Maharashtra has been and that delayed its decision that it cannot leave the current beneficiaries out of NHPM if it adopts the scheme. On the other hand, to extend a Rs 5 lakh health cover to the entire lot would mean a huge financial commitment.