Centre urges Andhra to adopt PPP model for healthcare infrastructure expansion
Union Health Minister JP Nadda informed that the Government of India is extending substantial financial support to States for PPP projects in the health sector through the VGF Scheme
By - Newsmeter Network
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New Delhi: Union Minister for Health and Family Welfare Jagat Prakash Nadda has called upon the Government of Andhra Pradesh to extensively adopt the Public–Private Partnership (PPP) model to accelerate the expansion of healthcare infrastructure and improve the quality, efficiency and accessibility of medical services across the State.
PPP projects model for private investments
In a letter addressed to Minister for Health, Medical Education and Family Welfare Satya Kumar Yadav, the Union Health Minister highlighted that PPP projects have emerged as a well-established and proven mechanism for attracting private investment, leveraging expertise, and enhancing service delivery in infrastructure sectors across the country.
Emphasising the growing need to strengthen healthcare infrastructure, Union Minister JP Nadda noted that the PPP model can play a transformative role in upgrading district hospitals, establishing new medical colleges, expanding diagnostic and dialysis services, and introducing advanced technology-driven solutions in public healthcare facilities, especially in underserved and aspirational regions.
Central support to PPP projects
The Union Health Minister informed that the Government of India is extending substantial financial support to States for PPP projects in the health sector through the Viability Gap Funding (VGF) Scheme.
Under this framework, funding support can go up to 80 per cent of the project cost, along with up to 50 per cent assistance towards operational expenditure for the first five years. The VGF support is to be shared equally by the Central and State governments.
In addition, Union Minister JP Nadda drew attention to the India Infrastructure Project Development Fund (IIPDF) Scheme, which provides financial assistance of up to Rs 5 crore per project for project development activities, including feasibility studies and technical advisory services, to help States structure bankable and sustainable PPP projects.
Dedicated PPP Cell in Health Ministry
To ensure effective planning, coordination and implementation of PPP initiatives, the Union Health Minister advised the State Government to establish a dedicated PPP Cell within the Health Department, which would work in close coordination with the PPP Cell in the Ministry of Health and Family Welfare.
