Central government to provide VGF assistance for medical colleges in the state

Health, Medical and Family Welfare Minister Satya Kumar Yadav has stated that the Central Government has introduced the VGF scheme to encourage private investment for the construction of health infrastructure, including medical colleges, across the country. According to a report by The Hindu, the Minister questioned former Chief Minister Y.S. Jagan Mohan Reddy on how seeking Central Government assistance for the expansion of medical education in the state could be anti-people.

Minister Satya Kumar Yadav wrote in a four-page letter to Jagan Mohan Reddy that, based on the state government's proposals, the Central Government has agreed in principle to provide VGF assistance for the construction of five medical colleges. These five colleges will be built at Narsipatnam, Amalapuram, Palakollu, Bapatla, and Penugonda. The total construction cost of these five colleges is ₹3,706.6 crore, of which the Central Government will provide 30%, i.e., ₹1,091.11 crore as VGF assistance.

The controversy began when Jagan Mohan Reddy termed the government's decision to hand over the management of government medical colleges to private companies as a scam. In response to these allegations, the Minister clarified that, taking into account the state's financial situation, availability of resources, construction costs, and annual maintenance costs, the NDA government has decided to run nine government medical colleges under the Public-Private Partnership (PPP) model.

The Minister further added that due to five years of mismanagement and flawed economic policies of the previous YSRCP government, the NDA government has inherited a debt of more than ₹10 lakh crore. He requested Jagan Mohan Reddy to stop making allegations against the NDA government.

Jagan Mohan Reddy served as the Chief Minister of the state as a leader of the previous YSRCP government. He is the president of the YSRCP party and had implemented various policies in the state.