**Executive Summary**
This document is the answer to Unstarred Question No. †1123 in Lok Sabha, to be answered on December 5th, 2025, regarding the establishment of medical colleges through the Public-Private Partnership (PPP) model. The Ministry of Health & Family Welfare is implementing a Centrally Sponsored Scheme (CSS) for establishing new medical colleges attached to existing district/referral hospitals. The document also mentions grants provided under the Viability Gap Funding (VGF) Scheme.
**Key Points / Main Content**
* **Centrally Sponsored Scheme (CSS)**:
* Administered by the Ministry of Health & Family Welfare for establishing new medical colleges attached to existing district/referral hospitals.
* Preference given to underserved areas and aspirational districts without existing Government or private medical colleges.
* Funding ratio: 90:10 for North Eastern and Special Category States, 60:40 for others, between the Centre and State Governments.
* 157 Government medical colleges have been approved under the scheme, with 137 functional.
* **Viability Gap Funding (VGF) Scheme**:
* Provides grants for establishing medical colleges under the PPP model by upgrading existing district hospitals.
* Conditions: State Governments must allow full access to hospital facilities for the attached medical college, and land must be provided on concessional terms.
* Sub-scheme I: Up to 30% of the project cost may be provided as Central VGF support.
* Sub-scheme II: Up to 40% of the project cost and 25% of the Net Present Value (NPV) of Operations and Maintenance (O&M) cost for the first five years may be supported as an operational grant.
* **In-Principle Approvals**:
* Eleven medical colleges have received in-principle approval under the Scheme.
* Locations: Jharkhand (Giridih, Dhanbad, Jamtara, Khunti), Arunachal Pradesh (Namsai), and Uttar Pradesh (Baghpat, Mainpuri, Hathras, Kasganj, Mahoba, Hamirpur).
**Impact Analysis**
* **Ministry of Health & Family Welfare**
**Impact:** Responsible for administering the CSS scheme and coordinating with the Department of Economic Affairs (DEA) for VGF Scheme.
**Action Required:** Continue administering the CSS scheme, monitor the progress of approved medical colleges, and coordinate with relevant stakeholders.
* **State Governments**
**Impact:** Required to facilitate the establishment of medical colleges under the PPP model and ensure compliance with the conditions of the VGF Scheme.
**Action Required:** Allow full access to hospital facilities for attached medical colleges, provide land on concessional terms, and contribute matching funds for the VGF Scheme.
* **Project Sponsoring Authority**
**Impact:** Required to provide matching contributions for the VGF Scheme.
**Action Required:** Provide matching contributions.
* **Aspirational Districts & Underserved Areas**
**Impact:** Benefits from establishment of new medical colleges attached with existing district/referral hospitals under PPP model.
**Action Required:** None
Key Entities Referenced
Ministry of Health and Family Welfare: Administers the Centrally Sponsored Scheme for establishment of new medical colleges.
Centrally Sponsored Scheme (CSS): Scheme for 'Establishment of new medical colleges attached with existing district/referral hospitals'.
Public-Private Partnership (PPP) model: Model for establishing medical colleges.
Viability Gap Funding (VGF) Scheme: Provides grant for establishment of medical colleges under Public-Private Partnership (PPP) mode by upgrading existing district hospitals.
Department of Economic Affairs (DEA): Informed about the Viability Gap Funding (VGF) Scheme.
GOVERNMENTOFINDIA
MINISTRYOFHEALTH AND FAMILYWELFARE
DEPARTMENTOFHEALTH AND FAMILYWELFARE
LOK SABHA
UNSTARRED QUESTION NO. †1123
TOBE ANSWERED ON05th DECEMBER 2025
MEDICALCOLLEGE THROUGH PPPMODEL
†1123. SHRIRAMPRITMANDAL:
SHRIKAUSHALENDRAKUMAR:
Will the Ministerof HEALTH AND FAMILYWELFAREbe pleasedtostate:
(a) whether the Government has formulated any scheme for the establishment of medical
collegesinthe States through Public-PrivatePartnership(PPP) model;
(b) if so, the details of the regions which have already started working on establishing medical
collegesthrough the PPPmodel,State/UT-wise; and
(c)the salient features of thisPPPmodelof medicalcollegeestablishment inthe country?
ANSWER
THE MINISTER OFSTATE INTHE MINISTRYOFHEALTH ANDFAMILY
WELFARE
(SMT.ANUPRIYAPATEL)
(a) to (c): The Ministry of Health & Family Welfare administers a Centrally Sponsored Scheme
(CSS) for ‘Establishment of new medical colleges attached with existing district/referral
hospitals’ with preference to underserved areas and aspirational districts, where there is no
existing Government or private medical college. The fund sharing mechanism between the
Centre and State Governments is in the ratio of 90:10 for North Eastern and Special Category
States, and 60:40 for others. Under the scheme, all the envisaged 157 Government medical
collegeshave already beenapproved,of which 137are functional.
Also, as informed by Department of Economic Affairs (DEA), under Viability Gap
Funding (VGF) Scheme, grant is provided for establishment of medical colleges under
Public‑Private Partnership (PPP) mode by upgrading existing district hospitals, subject to the
conditions that (i) State Governments allow full access to hospital facilities for the attached
medical college, and (ii) land is provided on concessional terms. The Scheme provides the
following:
i. Under Sub‑scheme I, up to 30% of the project cost may be provided as Central VGFsupport, with an equivalent matching contribution permissible from the Project Sponsoring
Authority.
ii. Under Sub‑scheme II (pilot/demonstration projects), up to 40% of the project cost and
up to 25% of the Net Present Value (NPV) of Operations and Maintenance (O&M) cost for
the first five years may be supported as operational grant, with matching contributions
allowedfrom the concerned State/Authority.
DEA further informed that eleven (11) medical colleges have received in‑principle
approval under the Scheme. These projects are located in the States of Jharkhand (Giridih,
Dhanbad, Jamtara and Khunti), Arunachal Pradesh (Namsai) and Uttar Pradesh (Baghpat,
Mainpuri, Hathras, Kasganj, Mahoba andHamirpur).
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