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 improve the quality, efficiency and accessibility of medical services across the state, according to official information.
The appeal was made in a letter addressed to Andhra Pradesh’s Health, Medical Education and Family Welfare Minister Satya Kumar Yadav, in which Nadda highlighted that PPP projects have emerged as a well-established mechanism for attracting private investment, leveraging expertise and enhancing service delivery in infrastructure sectors nationwide.
Nadda noted that strengthening healthcare infrastructure remains a pressing need, and that the PPP model could 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, particularly in underserved and aspirational regions.
To support such initiatives, the Government of India is making substantial financial assistance available to states through the Viability Gap Funding (VGF) Scheme, under which funding support for health-sector PPP projects can cover up to 80 per cent of the project cost, along with up to 50 per cent assistance toward operational expenditure for the first five years. This support is to be shared equally between the central and state governments.
In addition, Nadda drew attention to the India Infrastructure Project Development Fund (IIPDF) Scheme, which provides financial assistance of up to ₹5 crore per project for project development activities such as feasibility studies and technical advisory services, helping states to 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 its Health Department that would work closely with the corresponding cell in the Ministry of Health and Family Welfare.
Nadda expressed confidence that proactive engagement by the state leadership and strategic adoption of the PPP model would deliver 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.
