Parliament Question: Upgradation of Medical Colleges under Public Private Partnership

**Executive Summary** This document is a response to Starred Question No. 91 in the Lok Sabha, scheduled for December 5th, 2025, regarding the upgradation of medical colleges under Public-Private Partnership (PPP). It outlines the centrally sponsored scheme administered by the Ministry of Health & Family Welfare for establishing new medical colleges and the Viability Gap Funding (VGF) Scheme for upgrading existing district hospitals. The response details the fund sharing mechanism, project cost support, and regulatory requirements. **Key Points / Main Content** * **Centrally Sponsored Scheme (CSS):** * The Ministry of Health & Family Welfare administers the CSS for establishing new medical colleges attached to existing district/referral hospitals. * Preference is given to underserved areas and aspirational districts with no existing medical college. * Fund sharing between the Centre and States is 90:10 for North Eastern and Special Category States and 60:40 for others. * 157 Government medical colleges have been approved under the scheme, including 14 in Madhya Pradesh and 2 in Maharashtra. * **Viability Gap Funding (VGF) Scheme:** * The Department of Economic Affairs (DEA) provides grants under the VGF Scheme for upgrading existing district hospitals to medical colleges under PPP. * State Governments must allow full access to hospital facilities and provide land 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 operational grant. * Eleven medical colleges have received in-principle approval under the Scheme in Jharkhand, Arunachal Pradesh, and Uttar Pradesh. * **Regulatory Requirements:** * The Minimum Standard Requirement (MSR) Regulations of the National Medical Commission prescribe norms for faculty recruitment, curriculum regulation, diagnostic, and teaching equipment. **Impact Analysis** **Central Government (Ministry of Health & Family Welfare)** * **Impact** * The ministry has to administer the Centrally Sponsored Scheme and ensure the allocation of funds according to the specified fund sharing mechanisms. * The Ministry has to adhere to MSR regulations. * **Action Required** * Monitor the progress of the approved medical college projects. * Ensure compliance with MSR regulations. **State Governments** * **Impact** * State governments are responsible for providing land on concessional terms for colleges upgraded under the VGF scheme. * State governments are responsible for the implementation and administration of the projects within their states. * **Action Required** * Provide full access to hospital facilities for the attached medical colleges. * Contribute matching funds as required under the CSS and VGF schemes. **Private Partners (Under PPP):** * **Impact** * The private partners are to invest in and manage the operation and academic infrastructure of the medical colleges. * **Action Required** * The private partners must fulfil their obligations for operations and academic infrastructure as per the PPP model. **Medical Colleges:** * **Impact** * The scheme will provide access to improved facilities and faculty. * **Action Required** * Follow MSR Regulations from National Medical Commission for faculty recruitment, curriculum regulation, diagnostic and teaching equipment.

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