ESI physical disability - can we terminate this employee from factory services?

In our Organization. One of our employee got accident, he is covered under ESI Act. Initially he went to private hospital. But later he went to ESI Hospital. Now ESI doctor has given medical leave since one year. And now also he is in ESI leave. Now our management is asking him to appear to our factory doctor who is going to certify whether he can continue to our service or not.
In my opinion factory doctor will definitely certify that he can not continue to our service as of physical disability. In this case can we terminate this employee from factory services. If yes, will he more eligible for ESI medical benefit.

1. Sir, you have not indicated in your question whether the accident was such which has been admitted as an employment injury by ESIC. Whether, the said employee has received Temporary Disablement Benefit (TDB) from ESIC during the period of such incapacity after his accident. If the accident is admitted as that of employment injury ( after if employer submitted accident report), then in such case, permanent disablement benefit can be claimed by employee and that too after the said employee is declared fit and if the appropriate Medical Board of the area as constituted by ESIC approves his loss of earning capacity, if any. Kindly see provisions of the ESI Act, 1948 and rules/regulations framed thereunder. If the case is not of employment injury, I think, the employee will not be entitled for such Permanent Disablement Benefit (PDB).
2. So far as termination of said employee is concerned, please see Section 73 of ESI Act, 1948 as well as Regulation 98 of ESI (General) Regulations, 1950, the provisions of which, I think, are very clear.