The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has given its approval to Phase-III of the Centrally Sponsored Scheme (CSS) aimed at strengthening and upgrading government medical colleges, standalone postgraduate institutes, and hospitals across India.
This ambitious initiative is set to create 5,000 postgraduate (PG) seats and 5,023 undergraduate (MBBS) seats, enhansing India’s healthcare infrastructure and expanding access to trained medical professionals nationwide.
Strengthening India’s Healthcare Workforce
With India’s population crossing 1.4 billion, the demand for skilled healthcare professionals has never been higher. The new phase of the CSS seeks to:
- Introduce new medical specialties in government institutions.
- Enhance the quality of medical education to meet global standards.
- Expand both UG and PG seats, ensuring a steady supply of specialists, particularly in rural and underserved regions.
- Leverage existing infrastructure, ensuring cost-effective expansion of healthcare facilities.
Officials emphasize that the scheme will support balanced regional distribution of medical resources, preventing over-concentration in urban centers and addressing shortages in remote areas.
Financial Outlay of Phase-III
The total estimated cost for Phase-III of the scheme from 2025-26 to 2028-29 is Rs. 15,034.50 crore:
Join NEET News 2025 - Central Government Share: Rs. 10,303.20 crore
- State Governments’ Share: Rs. 4,731.30 crore
- Enhanced cost ceiling per seat: Rs. 1.50 crore
This allocation ensures that the expansion is both financially viable and sustainable, maximizing the return on investment in India’s healthcare ecosystem.
Key Benefits of Phase-III Expansion
The new phase of the scheme is expected to provide significant benefits to the healthcare sector, students, and society:
- Increased Access to Healthcare: Expanding seats and specialties will improve healthcare delivery in rural and remote areas, ensuring timely treatment for underserved populations.
- Optimized Use of Existing Infrastructure: By upgrading current medical colleges and hospitals, the scheme minimizes unnecessary expenditure while improving service quality.
- Steady Supply of Specialists: Additional PG seats will help produce more trained doctors in critical medical fields, addressing national shortages.
- Balanced Regional Distribution: The initiative promotes equitable healthcare resources across all states and union territories.
Impact on Employment and Healthcare System
Phase-III is expected to significantly enhance employment opportunities in the healthcare sector:
- For students: More opportunities to pursue MBBS and PG courses within India.
- For professionals: Increased demand for faculty, paramedics, researchers, administrators, and support staff.
- For society: Better availability of medical specialists, reduced healthcare accessibility gaps, and improved quality of affordable healthcare.
This initiative is also expected to strengthen India’s healthcare system, which is critical for achieving Universal Health Coverage (UHC).
Implementation and Targets
The Ministry of Health & Family Welfare (MoHFW) will release detailed guidelines for the execution of Phase-III. The scheme aims to achieve:
- 5,000 PG seats by 2028-29
- 5,023 MBBS seats by 2028-29
India currently has 808 medical colleges, the highest globally, with a total intake of 1,23,700 MBBS seats. Over the last decade, the country has added 69,352 MBBS seats and 43,041 PG seats. However, shortages persist in several regions, particularly in rural and underserved areas.
The 22 new AIIMS institutes under PMSSY continue to provide tertiary care and produce highly skilled health professionals. Meanwhile, the Medical Institution (Qualifications of Faculty) Regulations 2025 have introduced a competency-based and inclusive approach to recruit qualified medical faculty, ensuring high teaching standards across the nation.
Government Commitment to Healthcare
Through Phase-III of the CSS, the government underscores its commitment to:
- Expanding the pool of qualified medical professionals
- Strengthening human resources for health
- Improving nationwide access to quality healthcare
The initiative aligns with India’s long-term healthcare strategy, aiming to bridge gaps, improve medical education quality, and build a resilient healthcare infrastructure capable of meeting the challenges of the 21st century.
Phase-III of the Centrally Sponsored Scheme is a big step India’s medical education revolution. By creating thousands of new MBBS and PG seats, introducing new specialties, and leveraging existing infrastructure, the government is taking concrete action to ensure equitable, high-quality healthcare for all Indians. This initiative not only addresses immediate shortages of medical professionals but also lays the foundation for a stronger, future-ready healthcare system, capable of meeting the needs of a growing and diverse population.
Before further expansion of Medical Colleges, essential to provide adequate infrastructure, faculty facilities and services in the existing colleges to ensure quality of education
Absolutely agree. Expansion without strengthening existing infrastructure can dilute the quality of medical education. Prioritizing better faculty recruitment, modern labs, adequate hospital tie-ups, and student support systems in current colleges will create a strong foundation before opening new ones.