Amaravati, December 26 2025: Union Health Minister J.P. Nadda has called on the Andhra Pradesh government to adopt the Public-Private Partnership (PPP) model more broadly.
He sent a letter to State Health Minister Satya Kumar Yadav highlighting how PPP attracts private investment, brings expertise, and improves efficiency, quality, and access to services. The approach can upgrade district hospitals, build new medical colleges, expand dialysis and diagnostics, and introduce advanced tech in underserved areas.
Nadda pointed to strong central backing through the Viability Gap Funding (VGF) scheme. It covers up to 60% of project costs for medical colleges and similar facilities shared equally by the Centre and the state, with up to 80% for pilots, plus 50% help on operations for the first five years.
Over ₹2,000 crore in projects have gained approval nationwide, including 919 PPP dialysis centres in 20 states. He recommended creating a dedicated PPP Cell in the state health department for better planning and coordination with the Centre.
