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Asian Development Bank Approves INR 4,000 Cr Loan for Maharashtra's Healthcare Infrastructure

Written by : Jayati Dubey

February 15, 2024

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With this loan, the ADB has suggested seven key improvements at both administrative and medical education levels.

Maharashtra Chief Minister Eknath Shinde has announced that the Asian Development Bank (ADB) will provide a loan of INR 4,000 Cr to enhance medical facilities in the state.

The first installment of INR 1,200 Cr has received in-principle approval, marking a significant step towards improving healthcare infrastructure and medical education in Maharashtra. The loan is intended to support the development of a 500-bed hospital in Dharashiv (formerly Osmanabad).

Additionally, the ADB has suggested seven key improvements at both administrative and medical education levels.

Key Highlights

The seven key areas of improvement, as suggested by the ADB, include the establishment of a center of excellence, digital medical education and health policy, e-hospital initiatives, encouragement for medical officers and staff, property management, sustainability policy, and recruitment centers. The focus is on comprehensive enhancements that cover various aspects of healthcare delivery and management.

Regarding the allocation, the statement quoted the Chief Minister saying, "The ADB would be giving INR 1,200 Cr for the construction of the hospital. The tender procedure for the construction of similar infrastructure at Alibaug in Raigad district is completed, while the process for Kolhapur and Sindhudurg is ongoing."

During the inauguration of a super-specialty hospital in Ulhasnagar, CM Shinde expressed the government's commitment to establishing a medical college and super-specialty hospital in every district. He emphasized the importance of replicating the successful cashless hospitalization system implemented in Thane across the entire state.

Shinde highlighted the transformative efforts undertaken by his government, referring to it as the "biggest surgery in the state." This statement alludes to the political developments in June 2022 when Shinde's rebellion played a role in bringing down the Maha Vikas Aghadi government led by Uddhav Thackeray.

The loan from the Asian Development Bank is expected to contribute significantly to Maharashtra's healthcare infrastructure, providing the necessary funds for the construction of hospitals and the implementation of key improvements in medical education and administration. This financial support aligns with the state's goal of enhancing healthcare facilities and services for its residents.

The focus on various aspects, including digital medical education, sustainable policies, and decentralized medicine procurement, reflects a comprehensive approach to healthcare improvement. With the construction of new hospitals and a commitment to establishing medical colleges and super-specialty hospitals in every district, the government aims to elevate the standard of healthcare services across Maharashtra.

ADB’s Other Loan Offerings

In a similar development, in November last year, ADB approved a $500 million loan aimed at enhancing the quality and affordability of tertiary healthcare and medical education in Maharashtra. The program's overarching goal is to alleviate the financial burden on patients by improving access to quality drugs. It also focuses on sustainable asset management with a pioneering climate-resilient asset planning policy.

Earlier this year, ADB signed an agreement to provide INR 150 Cr (approximately $18.4 million) in debt financing for Cygnus Medicare. The funding aims to advance affordable and high-quality healthcare in northern India, focusing on expanding access in Tier-II and Tier-III cities. Established in 2011, Cygnus currently operates a network of 20 multispecialty hospitals across 18 cities in India.


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