The Uttar Pradesh state cabinet on Monday approved an incentive scheme to attract private sector investment to set up private medical colleges in the state.
Chief minister Akhilesh Yadav presided over the meeting of the state cabinet, which also approved new rules providing for free treatment to patients suffering from serious diseases like ailments of the heart, cancer, kidney and liver etc.
Speaking to mediapersons after the cabinet meeting, the chief minister said the state was facing a shortage of doctors. The state also did not have sufficient number of medical colleges, said the chief minister. So, the state cabinet approved the scheme that provides for incentives and various facilities to those setting up the medical colleges, he said.
The land use change charges for the medical colleges would be only Re 1 per square metre. Applications for land use change will be decided within one month.
Land use of the green belt and ponds will not be changed. No development charges or inspection charges will be levied, and exemption from stamp duty would be provided on transfer of land for medical colleges.
The exemption will be granted on the minimum required size of land under the provisions of the Medical Council of India. The medical education department will bear the charges for setting up of a dedicated 33/11KV feeder up to 5 km, and a 220/132 KV sub station to ensure uninterrupted power supply to the proposed medical college.
The state government would also provide an interest subsidy of 5% on term loans given by banks and financial institutions to the medical colleges. This interest subsidy will be given up to a maximum of Rs 1 crore per medical college, for five years from the completion of admission to the first year.
Financial assistance of Rs 20 crore will also be given to the private sector medical colleges (with a 100-bedded hospital) set up in Devipatan, Basti and Mirzapur divisions.
A sum of Rs 10 crore would be provided after completion of process of admission to the first year, while the remaining sum will be given after the completion of admission to the second year. This assistance will be available only to the first medical college started in the aforementioned divisions.
Besides those living below the poverty line, farmers with less than 3 acre of agricultural land or less than Rs 35,000 annual income will be given free treatment at the government hospital and medical colleges.
A sum of Rs 25 crore has been assigned in the state budget for 2013-2014 for the purpose. After providing the treatment available, government hospitals, medical colleges or the medical institutes can refer the patients to specialized medical colleges/institutes if necessary.