Projects worth over ₹2,000 crore have been approved under the VGF scheme so far, says Union Health Minister J.P. Nadda. File
| Photo Credit: ANI
The Union Government has called upon State governments to extensively utilise the Public–Private Partnership (PPP) model to accelerate the expansion of healthcare infrastructure and improve the quality of medical services.
Emphasising the vast potential of the PPP in the health sector, the Central government has advised the State governments to prepare project plans to be implemented over the next three years.
Union Minister for Health and Family Welfare J.P. Nadda has addressed a letter to Andhra Pradesh’s Minister for Health, Medical Education and Family Welfare Satya Kumar Yadav in this regard.
In the letter, Mr. Nadda has outlined the successes achieved through the PPP model in various sectors since 2000, while underlining the growing necessity of adopting the model in the healthcare sector.
Along with the letter, Mr. Nadda has also shared the comprehensive policy document detailing the framework for implementing the PPP projects in the healthcare sector.
To encourage PPP projects in healthcare, the Centre has offered substantial financial support under the Viability Gap Funding (VGF) scheme.
Up to 60% of the total project cost will be provided as VGF assistance for setting up medical colleges and other healthcare infrastructure, says Mr. Nadda. For pilot projects, the funding can go up to 80%, he says. This is in addition to the 50% assistance towards operational expenses for the first five years, he adds. The VGF support will be shared equally by the Central and State governments, the Union Minister says.
Rapid expansion of healthcare infrastructure, improved quality and accessibility of services, enhanced efficiency through innovation, sustainable project development through shared risks, increased transparency and accountability, and faster and better healthcare delivery are some of the key benefit of the PPP model, Mr. Nadda says in the letter.
Noting that projects worth over ₹2,000 crore have been approved under the VGF scheme so far, the Union Minister says that 919 dialysis centres are operating under the PPP model across 20 States.
‘Set up dedicated cell’
To effectively tap the emerging opportunities, the Union Minister has advised the Andhra Pradesh Government to set up a dedicated PPP Cell to facilitate project planning and coordination with the Centre.
Responding to the letter, Mr. Satya Kumar, while expressing gratitude for the guidance and support being extended by the Centre, has outlined the government’s efforts to develop 10 medical colleges in the State under the PPP model.
Published – December 25, 2025 06:40 pm IST
