Govt. to go ahead with PPP model of developing medical colleges in Andhra Pradesh

Andhra Pradesh Chief Minister N. Chandrababu Naidu has asserted that the government will not compromise on providing quality medical education and healthcare services to the poor.

At a review meeting on the Medical and Health Department, at the Secretariat on Wednesday, Mr. Naidu reiterated that equitable access to healthcare remained the core priority of the government.

Stating that the PPP model was being adopted for construction of medical colleges across the country, Mr. Naidu directed the officials to proceed with the model to ensure avaiability of quality and corporate-level healthcare to the economically weaker sections. He also instructed the officials to effectively counter the misinformation being spread about the PPP model by clearly outlining its objectives and safeguards.

Guidelines

The officials briefed the Chief Minister about the guidelines and policy framework issued by the Union Government for promoting hospitals and medical colleges under the PPP model. They explained that the Government of India, through the Department of Economic Affairs under the Ministry of Finance, introduced various financial support mechanisms to encourage PPP projects, with special emphasis on the social and health sectors. The Viability Gap Funding (VGF) scheme was a key component of the initiative, they said.

Under the VGF scheme, financial assistance for eligible PPP healthcare projects was proposed to be shared equally by the Centre and State governments. Of the total 60% financial support envisaged for medical sector projects, the Centre and the State would bear 30% each. Officials informed Mr. Naidu that approvals under the scheme had already been granted for hospitals and medical colleges in States such as Arunachal Pradesh, Jharkhand and Uttar Pradesh.

The Chief Minister directed the officials to take forward the proposed PPP medical colleges in the State, in line with the Central guidelines, and extend VGF and other incentives accordingly.

First phase

In the first phase, tenders had been invited on September 18 for the construction and operation of medical colleges in Adoni, Madanapalle, Pulivendula and Markapuram. Six national and international firms participated in the pre-bid meeting on October 6.

Following requests from bidders, site visits were facilitated. A second pre-bid meeting was conducted on October 23. Based on the feedback, the government agreed to proposals such as allocation of up to 50 acres per project, flexibility in designs as per the National Medical Commission (NMC) norms, and increasing consortium partners from two to three. The officials said one firm had come forward to take up the Adoni Medical College project.

The Chief Minister also reviewed the ‘Sanjeevani’ project being implemented on a pilot basis in Kuppam, and instructed the officials to address the challenges and ensure its effective rollout across Chittoor district.