YSRCP accuses Chandrababu Naidu govt of “massive scam” over PPP model for medical colleges

Amaravati (Andhra Pradesh) [India], November 11 (ANI): YSR Congress Party (YSRCP) chief YS Jagan Mohan Reddy on Wednesday strongly opposed the Andhra Pradesh government's proposed move to hand over government medical colleges to private players under the Public-Private Partnership (PPP) model, alleging that the move amounted to a "massive scam" involving public assets.
In a post shared on X, Reddy accused Chief Minister N Chandrababu Naidu of handing over government medical colleges, which provide free treatment to the poor, to private players despite the infrastructure being developed with public funds.
"@ncbn garu, you are handing over government medical colleges, which provide free treatment to the poor, to private players in the name of the PPP model. These colleges are public assets, and your plan amounts to a massive scam," he said.

.@ncbn garu, you are handing over government medical colleges, which provide free treatment to the poor, to private players in the name of the PPP model. These colleges are public assets, and your plan amounts to a massive scam. Our government established 17 new medical colleges. We opened five and prepared another three to begin classes. The remaining nine could also be completed by investing Rs. 1,000 crore a year. Why are you not doing that? Doesn’t your PPP plan make it clear that this is a well-planned scam? ▪️You are selling off colleges that are already complete and those at various stages of construction. ▪️Land worth hundreds of crores is being leased for just Rs. 100 an acre. ▪️More than half of the medical seats could be sold at private rates. ▪️Rs. 1,630 crore in public money is being given to these colleges in the name of Viability Gap Funding (VGF). ▪️The government will also pay the salaries of doctors, professors and staff for two years. What is this, if not exploitation? The cost would be Rs. 5 crore a month, or Rs. 120 crore over two years for each college. The land belongs to the government. The buildings are being constructed with government funds. The VGF will also come from public money. The government will even pay the staff salaries. If this is not a scam carried out in the name of private institutions, then what is it? All the colleges we established are teaching hospitals. They would provide quality, free multispecialty treatment to the poor. Half the seats would be filled through the convenor quota. The remaining seats would also be available at fees far lower than those charged by private colleges. We had developed a strong model to ensure that the revenue generated would help run these colleges without financial difficulty. We had also worked with banks to arrange the required funding. These are teaching hospitals. The professors working there and the medical and nursing students studying there would also take part in providing healthcare services. This would make the colleges viable to operate. With such arrangements already in place, why is there any need to sell them under the cover of a PPP model? These medical colleges would also be connected to area hospitals, Community Health Centres (CHCs), Primary Health Centres (PHCs) and village clinics in their respective districts. Together, they could form a network that provides quality multispecialty care down to the village level. As the quality of government healthcare improves, private hospitals would also have to provide treatment at affordable prices. Isn’t it unjust to sell off colleges that can deliver all these benefits? Chandrababu garu, your government has already weakened the public healthcare system. ▪️You have undermined Aarogyasri, which provides free treatment worth up to Rs. 25 lakh. Payments due to network hospitals have been delayed, and bonds have been issued in place of payments. Even after that, Rs. 3,000 crore remains unpaid. As a result, network hospitals are staying away from Aarogyasri services. ▪️Our government supplied medicines that met GMP and WHO standards. Now, government hospitals lack even basic medicines and cotton. ▪️Government hospitals across the country face a 61% shortage of specialist doctors. Our zero-vacancy policy reduced vacancies in the State’s government hospitals to 4%. You have abandoned that policy, taken government hospitals back to their old condition and allowed vacancies to rise again. ▪️You have completely stopped the Nadu-Nedu works in government hospitals. ▪️You have weakened village clinics. ▪️You have left the 108 and 104 ambulance services in a dire condition. Chandrababu garu, people strongly oppose your decision. One crore people signed a petition organised by our party to protest against it, yet you are pressing ahead. This is unjust. We completely oppose the privatisation of government medical colleges. When our government returns to power, we will take legal action against everyone involved in this matter and will not hesitate to make arrests. If you try to loot public assets through scams, people will not remain silent. They will teach you a fitting lesson. #SaveMedicalCollegesInAP

— YS Jagan Mohan Reddy (@ysjagan) November 11, 2026

The former Andhra Pradesh Chief Minister said his government had established 17 new medical colleges, of which five were opened and another three were prepared to begin classes. He questioned the need for the PPP model, claiming that the remaining nine colleges could have been completed by investing Rs 1,000 crore annually.
"Why are you not doing that? Doesn’t your PPP plan make it clear that this is a well-planned scam?" he asked.
Alleging that government-owned land worth hundreds of crores of rupees was being leased for just Rs 100 per acre, Jagan claimed that more than half of the medical seats could be offered at private rates. He also objected to the proposed allocation of Rs 1,630 crore in public funds to the colleges under Viability Gap Funding (VGF).
He further alleged that the government would bear the salaries of doctors, professors and other staff for two years, putting the expenditure at Rs 5 crore per month, or Rs 120 crore over two years for each college.
"The land belongs to the government. The buildings are being constructed with government funds. The VGF will also come from public money. The government will even pay the staff salaries. If this is not a scam carried out in the name of private institutions, then what is it?" he said.
Jagan maintained that the medical colleges established during his government were designed as teaching hospitals that would provide quality, free multispecialty treatment to the poor. He said half the seats would be filled through the convenor quota, while the remaining seats would also be available at fees significantly lower than those charged by private medical colleges.
He claimed that his government had developed a financially sustainable model under which revenue generated by the institutions would help meet their operational expenses. He also said arrangements had been made with banks to secure the required funding.
"These are teaching hospitals. The professors working there and the medical and nursing students studying there would also take part in providing healthcare services. This would make the colleges viable to operate. With such arrangements already in place, why is there any need to sell them under the cover of a PPP model?" he added.
Explaining the proposed healthcare network, Jagan said the medical colleges would be linked to area hospitals, Community Health Centres (CHCs), Primary Health Centres (PHCs) and village clinics in their respective districts, creating a network to provide multispecialty healthcare down to the village level.
"As the quality of government healthcare improves, private hospitals would also have to provide treatment at affordable prices. Isn’t it unjust to sell off colleges that can deliver all these benefits?" he asked.
He also accused the Naidu government of weakening the state's public healthcare system, alleging that it had undermined the Aarogyasri scheme, which provides free treatment worth up to Rs 25 lakh.
"Payments due to network hospitals have been delayed, and bonds have been issued in place of payments. Even after that, Rs 3,000 crore remains unpaid. As a result, network hospitals are staying away from Aarogyasri services," he alleged.
The YSRCP chief further alleged that government hospitals were facing shortages of basic medicines and cotton, while the government had stopped Nadu-Nedu works in hospitals and weakened village clinics.
He also criticised the condition of the 108 and 104 ambulance services and alleged that the government had abandoned the zero-vacancy policy for specialist doctors in state-run hospitals.
"Our government supplied medicines that met GMP and WHO standards. Now, government hospitals lack even basic medicines and cotton. Government hospitals across the country face a 61% shortage of specialist doctors. Our zero-vacancy policy reduced vacancies in the State’s government hospitals to 4%. You have abandoned that policy, taken government hospitals back to their old condition and allowed vacancies to rise again. You have completely stopped the Nadu-Nedu works in government hospitals. You have weakened village clinics. You have left the 108 and 104 ambulance services in a dire condition," he said.
He said one crore people had signed a petition organised by his party opposing the proposed privatisation of government medical colleges, but the government was continuing with its plan.
"Chandrababu garu, people strongly oppose your decision. One crore people signed a petition organised by our party to protest against it, yet you are pressing ahead. This is unjust," he said.
"We completely oppose the privatisation of government medical colleges. When our government returns to power, we will take legal action against everyone involved in this matter and will not hesitate to make arrests. If you try to loot public assets through scams, people will not remain silent. They will teach you a fitting lesson," he added. (ANI)