Centre Offers 80% Funding for Andhra's Medical Colleges under PPP Model
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The Union Health Ministry has announced that it will provide significant financial support to the Andhra Pradesh government for the construction of medical colleges and associated hospitals under a public-private-partnership (PPP) model. The support will come through the Viability Gap Funding (VGF) scheme, with the Centre and state governments sharing the funding equally. This support can cover up to 80% of the project cost, along with up to 50% assistance towards operational expenses for the first five years. As part of the initiative, the Centre will also provide financial assistance of up to ₹5 crore per project through the India Infrastructure Project Development Fund (IIPDF) scheme. This funding will be used for activities such as feasibility studies and technical advisory services to help structure bankable and sustainable PPP projects. Union Health Minister JP Nadda has emphasized the potential of the PPP model in accelerating healthcare infrastructure expansion and improving the quality, efficiency, and accessibility of medical services in Andhra Pradesh. He has asked the state government to establish a dedicated PPP cell within the health department to ensure effective planning and implementation of the model. The PPP model is expected to bring significant improvements in healthcare infrastructure, service delivery, and patient outcomes in Andhra Pradesh, while ensuring equitable access to quality healthcare services for all sections of society.
