Andhra Pradesh Adopts PPP Model To Expand Medical Colleges, Add 110 UG Seats, & Improve Healthcare Access

Amaravati (Andhra Pradesh): The Government of Andhra Pradesh on Wednesday announced a Public-Private Partnership (PPP) model to commission 10 medical colleges for rapid execution, higher quality standards, and wider healthcare access across the state.

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Officials said the new model addresses long-pending gaps in medical education and healthcare infrastructure, unlocking stalled investments and enabling time-bound completion of projects.

17 new medical colleges were sanctioned earlier with an estimated investment of Rs 8,480 crore. However, only Rs1,550.39 crore (18.2 per cent) was spent over four years up to June 2024, leaving 11 colleges non-operational and Rs6,152 crore unspent, which risked a 15-year completion timeline at the earlier pace. The current government released Rs786.82 crore after June 2024 to revive stalled works and has now adopted the PPP approach to ensure timely execution and improved service delivery.

10 medical colleges will be developed and operated under the PPP mode, complementing ongoing government efforts to operationalise sanctioned institutions.

The model is expected to save Rs3,700 crore in development costs and around Rs500 crore annually in operating costs.The PPP seat-sharing pattern allocates 75 Convenor Quota seats to each of the 150-seat colleges, adding 11 extra state-quota seats per college and 110 additional undergraduate seats annually for Andhra Pradesh students across the 10 PPP colleges.

The initiative ensures free OPD services, free diagnostics in OPD, and free IPD for 70 per cent of beds under PMJAY, NTRVST, and CGHS rates, with paid services applying to the remaining 30 per cent IPD beds.

Technology integration will include AI-driven diagnostics, telemedicine, and digital health records, alongside collaborations with reputed institutions to raise academic and clinical standards.

The model aligns with proven PPP practices already adopted in states such as Uttar Pradesh, Odisha, and Jharkhand for medical colleges, as well as PPP-led expansions in premier education institutions like IIT Chennai, IIM Udaipur, and IIIT Nagpur.

By 2024-25, Andhra Pradesh had 36 medical colleges with 4,046 UG seats, compared to just six colleges and 650 seats in 1995-96. Despite this growth, delays in capital execution left 11 sanctioned colleges non-operational as of June 2024, necessitating the use of a PPP-based delivery model.

Officials said the PPP initiative closes the funding-execution gap while reducing fiscal pressure on the exchequer through shared risk and lifecycle efficiencies. The model also enhances access for AP students through additional Convenor Quota seats and provides improved training and research opportunities by partnering with reputed medical institutions.

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