Unfazed by criticism, Andhra govt announces to develop 10 medical colleges under the PPP mode

Amaravati: Undeterred by criticism, Andhra Pradesh government today announced to develop 10 medical colleges under the Public-Private Partnership (PPP) mode.

The move is aimed at addressing gaps in medical education and public health infrastructure across the state. The government intends to ensure rapid execution, higher quality standards, and wider healthcare access through this model.

Background :

Seventeen new medical colleges were sanctioned earlier with an estimated investment of ₹8,480 crore. However, only ₹1,550.39 crore (18.2%) was spent over four years up to June 2024, leaving 11 colleges non-operational. The balance of ₹6,152 crore remained unspent, risking a 15-year completion timeline at the previous pace. The current government released ₹786.82 crore after June 2024 to revive stalled works and has now adopted PPP to ensure time-bound completion and improved service delivery.

• 10 medical colleges to be developed and operated under the PPP mode for speed, quality, and statewide access, complementing ongoing government efforts to operationalize sanctioned institutions.

• Estimated savings of ₹3,700 crore in development costs and approximately ₹500 crore per year in operations and maintenance through private-sector efficiency and shared investment under the PPP model.

• Additional 110 UG seats annually for AP students: the PPP seat-sharing pattern provides 75 Convenor Quota (General) seats per 150-seat college, yielding 11 extra state-quota seats per college versus prior structures (total 110 across 10 PPP colleges).

• Patient-first commitment: free OPD services, free diagnostics in OPD, and free IPD for 70% beds under PMJAY, NTRVST, and CGHS rates; paid services apply to 30% IPD beds with market-rate diagnostics for paid patients.

• Technology and quality upgrade: integration of AI-driven diagnostics, telemedicine, and digital health records, with collaboration opportunities for reputed medical institutions to elevate academic and clinical standards.

• National alignment: adopts proven PPP practices used by states such as Uttar Pradesh, Odisha, and Jharkhand for district hospital upgradation and new medical colleges, as well as PPP-led expansions in premier education institutions (IIT Chennai, IIM Udaipur, IIIT Nagpur).

Current status of medical education :

Andhra Pradesh has expanded to 36 medical colleges with 4,046 UG seats by 2024–25, up from 6 colleges and 650 seats in 1995–96, driven by both government and private sector participation. Despite this growth, delayed capital execution left 11 sanctioned colleges inoperative as of June 2024, necessitating course correction through targeted funding and a PPP-led delivery model to meet immediate demand and quality benchmarks.

Financial prudence and speed :

The PPP shift closes the funding-execution gap, with administrative sanctions contrasted against low historical utilization across multiple colleges; the model enables time-bound commissioning while reducing fiscal pressure on the exchequer through shared risk and lifecycle efficiencies. By channeling private sector capabilities for construction, equipment, and O&M, the state accelerates delivery and ensures continuity of quality clinical services.

Benefits for students and faculty

The seat-sharing pattern under PPP enhances access for AP students via increased Convenor Quota allocations, while partnerships with reputed institutions enable improved pedagogy, research exposure, and residency training in modern facilities with advanced technologies. Scalable PPP campuses will expand to underserved regions, ensuring a broader distribution of medical education and specialist services.