UP invites bids from private sector to set up Six medical colleges in PPP mode

The state has planned to establish medical colleges on the PPP model in 16 aspirational districts

The Uttar Pradesh government has invited bids to establish six medical colleges in the state under Public Private Partnership (PPP) mode. The state government has invited bids to set up six new medical colleges in different parts of the state.

These medical colleges will be come up in Baghpat, Hathras, Kasganj, Mainpuri, Hamirpur & Mahoba.

Sharing the announcement, Alok Kumar, Principal Secretary, Medical Education in UP Government wrote on Twitter: “Happy to announce that UP Govt becomes the first state to invite bids for setting up Medical Colleges in 6 Districts on PPP mode with VGF support from @FinMinIndia using a concession framework developed by @NITIAayog.”

Under the scheme, the central government will give ₹1,012 crores as financial support under the Viability Gap Funding (VGF) scheme. The total expenditure on these new colleges will be ₹1,525 crores. One college will get an average ₹160 crore.

The colleges will come up under the one-district-one-medical-college initiative of the Yogi Adityanath government which has been funded under the VGF scheme of the central government. The scheme is designed to provide capital support to PPP projects which otherwise would not be financially viable.

The state has planned to establish medical colleges on the PPP model in 16 aspirational districts and investors in two medical colleges in Sambhal and Maharajganj has been finalised. Now six more districts will get medical colleges in the same manner.

Kumar writes on Twitter: “Excellent news for the Districts #Baghpat, #Hathras, #Kasganj #Mainpuri, #Hamirpur & #Mahoba. Private partners selected through the bidding process can avail up to 40% capital support of the total project cost & 25% opex support for the first 5 years of operation.”
Under the scheme, the investor will get the district hospital and land for medical colleges on a 33-year lease. Once the period of lease is over, the investor will return the college to the state government.
The district hospital will be attached to the medical college as this is mandatory to run a medical college. 
In the next phase, the state plans to start new medical colleges in Amethi, Oraiyya, Bijnor, Bulandshahr, Chandauli, Gonda, Kaushambi, Kushinagar, Lakhimpur, Pilibhit, Sonbhadra, and Sultanpur.

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