nabard: Rs 13,000 crore Nabard loan for 16 medical schools in Andhra Pradesh | Amaravati News

AMARAVATI: In a great relief for the cash-strapped state government, Nabard agreed to grant a loan in the amount of Rs 13,000 crore for the construction of 16 new government medical colleges in the state. Nabard will release the funds gradually, which will help the state government to speed up the work of the medical school. The work of three medical faculties accredited by the Center has already started.
After giving consent in principle to grant the loan for building medical schools, Nabard reportedly asked the state medical and health department to submit detailed project reports (DPRs) for each faculty.

Sources said that Nabard agreed to grant the loan at a considerably low interest rate given that the government medical schools will play an important role in strengthening the state’s public health system.
Although the Center sanctioned three state medical schools, work on the proposed health facilities was lagging behind due to lack of funds.
After the financial troubles induced by Covid-19, the state government had set up a special purpose vehicle (SPV) in each college in order to pool financial assistance from bankers. After lengthy negotiations with various financial institutions, the state government convinced Nabard to join hands in granting the loan.
The state government had also requested a separate loan from Nabard to renovate and strengthen existing government medical colleges under the Nadu-Nedu program at a cost of Rs 7,500 crore. This proposal is also under review by Nabard.

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