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Centre to fund Andhra medical colleges under PPP mode through VGF: Nadda
The Centre will fund Andhra Pradesh's medical colleges and hospitals via the VGF scheme, covering up to 80% of costs, enhancing healthcare infrastructure.
The Centre will extend substantial financial support to the Andhra Pradesh government through the Viability Gap Funding (VGF) scheme for the construction of medical colleges and affiliated teaching hospitals under public-private-partnership (PPP) mode, Union minister for health JP Nadda said.
In a recent letter to state health minister Y Satya Kumar Yadav, which was released to the media on Friday, the Union health minister indicated that under the VGF framework, funding support can go up to 80% of the project cost, along with up to 50% assistance towards operational expenditure for the first five years.
“The VGF support is to be shared equally by the Central and state governments,” he clarified.
In addition, Nadda also pointed out that under the India Infrastructure Project Development Fund (IIPDF) scheme, the Centre will provide financial assistance of up to ₹5 crore per project for various development activities, including feasibility studies and technical advisory services, to help states structure bankable and sustainable PPP projects.
In an official release, the state government claimed that Nadda had suggested that the PPP model could be extensively adopted to accelerate the expansion of healthcare infrastructure and improve the quality, efficiency, and accessibility of medical services across the state.
“The PPP projects have emerged as a well-established and proven mechanism for attracting private investment, leveraging expertise, and enhancing service delivery in infrastructure sectors across the country,” the official release said, quoting the Union health minister.
The Union health minister noted that the PPP model can play a transformative role in upgrading district hospitals, establishing new medical colleges, expanding diagnostic and dialysis services, and introducing advanced technology-driven solutions in public healthcare facilities, especially in underserved and aspirational regions.
He asked the state government to establish a dedicated PPP cell within the health department to ensure effective planning, coordination, and implementation of the PPP initiatives. He said the model would result in 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.
