Singh Consultancy

2 Models for development of Medical Colleges (In remaining 16 unserved districts)

Model 1: Through State Policy for Private Sector Investment (Fiscal & Fiscal Incentives)

• Mode A: Private Hospital + Private Land for medical college (min 100 seats):

• Mode B: Private Hospital + Govt. provides land for medical college (minimum 100 seats)

• Mode C: Govt provides DH (as is where is basis) + Private brings land for medical college (minimum 100 seats)

Model 2: Through State Policy for Private Sector Investment (Fiscal & Fiscal Incentives)

• Govt provides DH + Govt provides land for medical college (As per VGF Scheme by DEA guidelines)

	Mode A : Private Hospital + Private Land for medical college	Mode B : Private Hospital + Govt. provides land for medical college	Mode C : Govt provides DH + Private brings land for medical college
Role of Private Sector	• Augment existing hospitals as per minimum regulatory requirements to run a medical college • Run medical college & hospital	• Run medical college & hospital for 33 years extendable for another 33 years automatically against annual lease rental of INR 1 (subject to performance) • Give back the leased land along with the infrastructure without hospital (as is where is basis) at the end of lease period (hospital shall not be returned)	• Develop & operate medical college post signing DH • Provide 500 sqm built up area within DH for public health functions to be performed by DGHS / health dept • Hand back the upgraded DH on as-is where is basis at the end of 33 years • Charge patients as per Policy
Role of Govt.	• Provide fiscal and non-fiscal benefits as per policy	• Provide fiscal & non-fiscal benefits as per policy • Provide land at nominal lease rental of Rs 1 per year	• Provide fiscal & non-fiscal benefits as per policy • Provide DH on as-is where-is basis with nominal lease rent of INR 1 p.a. • Repurpose the existing workforce from DH over two years (50% at the end of each year)

• Incentives (Priority of proposal selection [Mode A > Mode B > Mode C])

S. N.	Type of incentive	Mode A	Mode B	Mode C
1	Interest subsidy on capital cost of upgradation for 5 years (Capped to maximum 1 Cr p.a.)	5%	5%	5%
2	Assistance / seat for first 2 batches of MBBS only	5 lakh / seat / year (Capped to maximum 25 lakh per student)	2 lakh / seat / year (Capped to maximum 10 lakh per student)	3 lakh / seat / year (Capped to maximum 15 lakh per student)
3	Land conversion exemption	100%	100%	100%
4	Equipment subsidy	NA	NA	20% (Capped to maximum 10 Cr p.a.)
5	Stamp Duty	As per UP Industrial Policy
6	OPD consultation & related diagnostic fee	NA	NA	Rs. 100 per patient (3% p.a. escalation) (Capped to maximum 2 Cr p.a.)
7	Expansion subsidy	NA	Allotment of land at nominal lease rent of Rs 1	NA
8	Provision of Operational hospital	NA	NA	Provided at nominal lease rent of Rs 1 (33 years)
9	Other incentives	As per extant policies by respective department