The Telugu Desam Party-led coalition government in Andhra Pradesh headed by chief minister N Chandrababu Naidu received rude shock following poor response from the private parties to take up construction of medical colleges and associated teaching hospitals in public-private partnership (PPP) mode.
Last month, the state government issued notifications inviting bids for four medical colleges to be operated under the PPP model. The last date was extended twice, but the response was poor, shocking the government.
Only one bid was received for only one college—Adoni Medical College—for which KIMS submitted a proposal.
The remaining three colleges, located at Markapuram, Madanapalle and Pulivendula, failed to attract even a single bid, despite extension of deadline twice.
The lack of response for three colleges, coupled with a single bid for the fourth, has raised serious concerns within the government.
Apparently, the ruling coalition leaders have come to the conclusion that the private players were scared of the threat given by YSR Congress party chief and former chief minister Y S Jagan Mohan Reddy that if any private party takes part in the bidding of medical colleges, they would be sent to jail once he returns to power in 2029.
Senior TDP leaders privately admit that this development has sent out a “wrong signal” to the market.
For the last few months, chief minister N Chandrababu Naidu and deputy chief minister Pawan Kalyan have been saying that they will not allow the YSRCP to come to power again.
Naidu and his son Nara Lokesh have repeatedly said that industrialists who were hesitant to invest in Andhra Pradesh due to fears of Jagan Mohan Reddy’s return have now been reassured, and that those fears have been effectively dispelled.
Pawan Kalyan has also publicly reiterated that the YSRCP would not come back to power.
Yet, their assurances have failed to generate any confidence in the investors, who are still apprehensive that they would land in trouble if Jagan returns to power again.
The poor response to tender notification to hand over newly constructed government medical colleges to private entities under PPP mode is an indication to the lack of confidence among the investors.
Investors appear to be more influenced by Jagan Mohan Reddy’s threats than by the assurances offered by Chandrababu Naidu, Pawan Kalyan and Nara Lokesh.
With private institutions showing little enthusiasm to take over medical colleges under the PPP model, questions are now being raised about how the government will move forward on this policy.