Amaravati: Union Health Minister JP Nadda has urged the Andhra Pradesh government to extensively adopt the Public-Private Partnership (PPP) model to accelerate the expansion of healthcare infrastructure and enhance service delivery across the state, official sources said on Friday.
In a letter to Andhra Pradesh Health Minister Satya Kumar Yadav, Nadda highlighted that Public-Private Partnership (PPP) had emerged as a proven mechanism for attracting private investment, leveraging expertise, and enhancing efficiency and accessibility in the health sector, the sources said.
According to a recent PTI report, “Nadda has called upon the Government of Andhra Pradesh to extensively adopt the PPP model to accelerate the expansion of healthcare infrastructure,” the source said.
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The Union minister insisted that Public-Private Partnership (PPP) can play a transformative role in upgrading district hospitals, establishing new medical colleges, expanding diagnostic and dialysis services, and introducing advanced technology-driven solutions, particularly in underserved regions, the source added.
Nadda further added that the Central Government was extending substantial financial support to states for health sector PPP projects through the Viability Gap Funding (VGF) scheme, under which assistance could go up to 80 per cent of the project cost, according to the source.
JP Nadda noted that up to 50 per cent of operational expenditure for the first five years would also be supported, with VGF assistance to be shared equally by the Centre and the states, the sources added.
Nadda also referred to the India Infrastructure Project Development Fund scheme, which provides financial assistance of up to Rs 5 crore per project for feasibility studies and technical advisory services, officials said, reports PTI.
He advised the Andhra Pradesh government to establish a dedicated PPP cell within the health department to ensure effective planning, coordination, and implementation of PPP initiatives in coordination with the Union ministry, the sources added.