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Andhra's PPP medical colleges plan faces bidder shortage

Andhra Pradesh's initiative to build four new government medical colleges via public-private partnership has stalled, with only one bid received and none for the remaining sites despite deadline extensions.

Andhra's PPP medical colleges plan faces bidder shortage
Source: files

Amaravati, December 24, 2025: The Andhra Pradesh government's effort to expand medical education through public-private partnership (PPP) has encountered a significant setback. Plans to establish four new government medical colleges under the Design-Build-Finance-Operate-Transfer model drew limited interest from private developers.

Only one bid came in for the Adoni location, while Markapuram, Madanapalle, and Pulivendula received none by the December 22 tender deadline.

Officials held two pre-bid meetings where potential partners raised concerns over technical details, financial returns, and operational duties. The government adjusted clauses and extended deadlines twice, yet participation stayed low.

Health authorities have briefed the relevant minister and plan a high-level review soon to explore options, such as easing conditions, improving incentives, re-tendering, or rethinking the PPP approach for these areas.

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