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Centre Endorses Telangana’s Embrace of Public-Private Partnership Model in Healthcare Sector

In Andhra Pradesh
December 26, 2025

Vijayawada – The Central Government has expressed support for the Telangana State government’s adoption of the Public-Private Partnership (PPP) model in the medical and health sector, signalling promising prospects in this area. In a letter to Medical and Health Minister Satya Kumar Yadav, Union Health Minister JP Nadda underscored the necessity of devising strategies for the implementation of PPP in the healthcare sector over the next three years.

The endorsement comes amidst the Centre’s recognition of the PPP model’s success in expanding infrastructure across various sectors, including roads, airports, and ports. According to a recently shared five-page policy paper, the Union Government is prepared to provide Viability Gap Funding (VGF) for up to 60 percent of the total project expenditure aimed at setting up medical projects under the PPP model.

This move is expected to invigorate the healthcare sector in Telangana and potentially other states, with a focus on enhancing infrastructure and improving accessibility to quality health services for the public. The Centre’s support could pave the way for a more robust partnership between the State government and private entities in the pursuit of efficient and comprehensive healthcare solutions.

In another development, Kerala has also shown interest in leveraging the PPP model to strengthen its healthcare infrastructure. Union Health Minister JP Nadda’s emphasis on planning for the implementation of PPP in the healthcare sector over the next three years is expected to provide guidance to States like Kerala that are considering adopting this approach.

The adoption and endorsement of the PPP model by various State governments and the Central Government underscore the potential for a more collaborative, efficient, and effective healthcare system in India. As the country continues to strive towards universal healthcare access, the implementation of the PPP model is seen as a significant step in that direction.