Union Minister Nadda urges Andhra govt to build healthcare infrastructure under PPP model

Amaravati, Dec 26 Union Minister for Health and Family Welfare, J.P. Nadda, on Friday, called upon the Andhra Pradesh government 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.

In a letter addressed to the Andhra Pradesh Minister for Health, Medical Education and Family Welfare Satya Kumar Yadav, Union Minister Nadda 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.

The letter comes amid the attack by Opposition YSR Congress Party (YSRCP) on the NDA government in the state for what it calls privatisation of medical colleges.

YSRCP recently conducted a massive campaign across the state during which one crore signatures were collected to oppose privatisation of medical colleges.

Chief Minister N. Chandrababu Naidu, however, defended the PPP model to build the medical colleges in the state.

Emphasising the growing need to strengthen healthcare infrastructure, Union Minister 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.

He told that the Union government 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 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.

To ensure effective planning, coordination, and implementation of PPP initiatives, the Union Health Minister advised the Andhra Pradesh 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.

Union Minister Nadda expressed confidence that proactive engagement by the state leadership and strategic adoption of the PPP model would result in significant improvements in healthcare infrastructure, service delivery, and patient outcomes in Andhra Pradesh, while ensuring equitable access to quality healthcare services for all sections of society.

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