‘When we come to power, we’ll cancel these tenders’, Jagan’s warning for PPP in medical colleges in Andhra

Following the cabinet meeting on 4 September, the government approved the development of 10 medical colleges across the state under the PPP model.

Published Sep 10, 2025 | 7:06 PMUpdated Sep 10, 2025 | 7:34 PM

Pulivendula medical college

Synopsis: The statement came as a challenge to the current government’s plan to expand healthcare infrastructure in the state. Ten colleges were originally sanctioned and planned to be implemented in the public sector by the previous YSRCP government under Jagan Mohan Reddy, but the Chandrababu Naidu regime has now shifted the model from a public sector approach to a Public-Private Partnership (PPP).

Andhra Pradesh has witnessed a political tussle over the TDP-led state government’s decision to establish 10 new medical colleges under a Public-Private Partnership (PPP) model.  Former Chief Minister YS Jagan Mohan Reddy has warned that if his party returns to power, all tenders under this model will be scrapped.

“I am stating only one thing, anyone can participate in the tenders, but I am warning each and every one, when we come to power, we will cancel these tenders, take back the tenders, this should be remembered by everyone,” Jagan Mohan Reddy, president of the YSR Congress Party (YSRCP), said speaking with the media.

The statement came as a challenge to the current NDA coalition government’s plan to expand healthcare infrastructure in the state. These colleges were originally sanctioned and planned to be implemented in the public sector by the previous YSRCP government under Jagan Mohan Reddy, but the Chandrababu Naidu regime has now shifted the model from a public sector approach to a Public-Private Partnership (PPP).

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Medical colleges under PPP model

Following the cabinet meeting on 4 September, the government approved the development of 10 medical colleges across the state under the PPP model.

The colleges are to be set up in Adoni (Kurnool), Madanapalli (Annamayya), Markapur (Prakasam), Pulivendula (Kadapa), Penugonda (West Godavari), Palakollu (West Godavari), Amalapuram (Dr. B.R. Ambedkar Konaseema), Narsipatnam (Anakapalle), Bapatla, and Parvathipuram (Parvathipuram Manyam).

In the first phase, draft Requests for Proposals (RFPs) and concession agreements have been cleared for four colleges: Adoni, Markapur, Madanapalli, and Pulivendula. The remaining six colleges will follow after feasibility reports are finalized.

According to the government, “PPPs can reduce design, financing and implementation risks, improve project efficiency, and provide long-term value for money. All 10 medical colleges are planned to be developed under this model. Construction will be completed so that admissions can begin in the 2027–28 academic year.”

Ministers’ response to opposition

Tourism, Culture and Cinematography Minister Kandula Durgesh clarified that private participation is limited to construction. “Full ownership and administrative control of the colleges will remain with the state government,” he said.

Health Minister Satyakumar Yadav questioned the YSRCP’s performance in medical education during its tenure. “During his tenure, Jagan spent only ₹360 crore annually on new government medical colleges, while the coalition government has planned ₹7,000 crore in just two years,” Yadav said.

He added that the National Medical Commission (NMC) had approved only 50 seats for Paderu in 2024, compared to 150 seats each at the five colleges that began in 2023–24. “Pulivendula medical college, despite 84 percent expenditure completion, faced a 48 percent shortage of teaching staff according to NMC assessments, and annual self-financing fees were fixed at ₹20 lakh,” Yadav said.

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Status of earlier projects

The YSRCP government had announced 17 new medical colleges. In 2023, five were started at Machilipatnam, Rajahmundry, Eluru, Nandyal, and Vizianagaram. Of the five planned for 2024, only two received approval: one at Paderu with 50 seats and another at Pulivendula. Three others — Adoni, Madanapalli, and Markapur — did not receive permission.

The NMC initially approved Pulivendula Medical College for 2024–25, issuing a Letter of Permission on 16 August, 2024. However, on 10 September, the state’s Director of Medical Education requested withdrawal, citing incomplete infrastructure due to delayed execution of works.

The current government later reported that of ₹2,425 crore allocated for medical colleges, only ₹533 crore (22 percent) was spent, with ₹188 crore in payments pending since July 2023. Construction had stalled at several sites. Progress varied: Madanapalli (6 percent), Markapur and Adoni (10 percent each), Paderu (23 percent), and Pulivendula (58 percent).

Durgesh said the PPP model would add at least 150 MBBS seats at each new college. He accused the previous government of leaving projects incomplete. “Despite announcing five institutions, classes did not start, hostels and staff were absent, and facilities were inadequate in 2023–24 at Vizianagaram, Rajahmundry, Eluru, Machilipatnam, and Nandyal,” he said.

Durgesh further stated that the YSRCP spent only 17 percent of the required ₹8,500 crore budget and had itself introduced a self-financing model with fees of ₹12 lakh per seat. He said allegations of privatization under the current government were misleading.

(Edited by Sumavarsha)

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