Andhra Pradesh: NABARD grants INR 13,000 crore loan for 16 new medical colleges
The National Bank for Agriculture and Rural Development (NABARD) has granted INR 13,000 crore loan for 16 new medical colleges in Andhra Pradesh.
Andhra Pradesh government has got a big push for strengthening its health care infrastructure and establishing new medical colleges in the cash-strapped state. The National Bank for Agriculture and Rural Development (NABARD) has agreed to offer a loan worth INR 13,000 crore for 16 new medical colleges in the state.
The bank will release the funds in a phased manner and these funds will be utilised in keeping the work of these medical colleges on the fast track. Three of these medical colleges are already cleared by the Centre and work on it has also started. The construction of colleges at Paderu, Piduguralla, Machilipatnam and Pulivendula has started.
As per the TOI report, after giving an in-principle consent to grant the loan for the construction of 16 medical colleges, the bank has asked the state medical and health department to submit Detailed Project Reports (DPRs) of each and every college. Currently, the state has 11 government medical colleges (GMCs).
Tenders for medical colleges at Narsapuram, Bapatia, Eluru, anakapalli, Markapuram, Madanapalle and Nandyal are in the final state and works on colleges at Vizianagaram, Penukonda, Rajahmundray, Amalapuram and Adoni will start in April.
Reportedly, NABARD has given the loan at a very low rate of interest considering that the medical colleges will strengthen the public healthcare system in the state.
After the state was undergoing Covid-19 induced financial troubles, the government established Special Purpose Vehicle (SPV) for each and every college to get financial help from banks and after long negotiations with different banks, NABARD has agreed to grant the loan.
Andhra Pradesh government has also asked for a separate loan worth INR 7500 crore from NABARD to renovate and strengthen the existing GMCs under Nadu-Nedu scheme. The proposal is under active consideration with the bank.