The Union Cabinet chaired by Prime Minister Narendra Modi has approved Phase-III of the Centrally Sponsored Scheme (CSS) to upgrade and expand government medical institutions across the country.
The initiative will add 5,023 MBBS seats and 5,000 postgraduate (PG) medical seats, with a total financial outlay of Rs 15,034.50 crore from 2025–26 to 2028–29.
The scheme aims to:
- Increase undergraduate medical capacity
- Enhance availability of specialist doctors
- Introduce new specialties in government medical colleges
- Strengthen healthcare delivery in underserved regions
Each medical seat will now carry an enhanced cost ceiling of Rs 1.5 crore, reflecting the government’s commitment to quality infrastructure and training. The funding will be shared between the Centre (Rs 10,303.20 crore) and States (Rs 4,731.30 crore).
The scheme will cover:
- Upgradation of existing state and central government medical colleges
- Standalone PG institutes
- Government hospitals for PG expansion
- Extension of CSS for new MBBS seats
This move is expected to significantly improve access to medical education, reduce doctor-patient ratios, and create employment opportunities across the healthcare ecosystem.