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Centre Backs Healthcare PPPs as Andhra Pradesh Moves Forward on Medical Colleges

A policy letter details viability gap funding up to 60%, rising to 80% for pilots, plus early operational support.

Overview

  • Andhra Pradesh received a call from Union Health Minister J. P. Nadda to scale up PPP projects in healthcare and create a dedicated PPP cell for coordination.
  • Under the Centre’s VGF framework, eligible projects can receive up to 60% of capital costs—shared equally by the Centre and state—with pilots eligible for up to 80% and 50% support for operating expenses in the first five years.
  • Chief Minister N. Chandrababu Naidu directed officials to proceed with PPP medical colleges, apply VGF strictly per guidelines, and actively counter misinformation about the model.
  • Procurement for four PPP medical colleges is underway with tenders issued on September 18 for Adoni, Madanapalle, Pulivendula and Markapuram; six firms attended pre-bid rounds, terms were eased, and one bidder has indicated readiness for Adoni.
  • State Health Minister Satya Kumar Yadav outlined efforts to develop 10 medical colleges under PPP as the government also prepares to expand the Sanjeevani digital health records pilot beyond Kuppam.