6 November 2026
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Jharkhand to Build 4 New Medical Colleges Worth ₹1,249 Crore Under PPP Model to Strengthen Healthcare System

Khunti, Jamtara, Giridih and Dhanbad district hospitals to be upgraded into medical colleges, boosting MBBS seats and addressing doctor shortage in the state.
Indian Masterminds Stories

Ranchi: Jharkhand is set to significantly strengthen its healthcare system with the development of four new medical colleges in Khunti, Jamtara, Giridih, and Dhanbad under the Public-Private Partnership (PPP) model. The project, with an estimated cost of ₹1,249 crore, aims to upgrade existing district hospitals into modern medical colleges and improve access to quality healthcare across the state.

The tender process for selecting implementing agencies has already begun, marking a major step toward execution of the ambitious healthcare infrastructure project.

Hospitals in Four Districts to Be Upgraded into Medical Colleges

Under the plan, existing district hospitals will be upgraded into fully functional medical colleges with advanced facilities and increased capacity.

Key Project Details:

  • Khunti Medical College
    • Existing 130-bed hospital to be upgraded to 220 beds
    • 50 MBBS seats annually
    • Project completion timeline: 4 years
  • Jamtara Medical College
    • 100-bed hospital to be upgraded into a medical college
    • 100 MBBS seats annually
    • Completion timeline: 5 years

Similar developments are planned for Giridih and Dhanbad, with tenders for these districts expected to be floated soon.

Read also: CM Hemant Soren Reviews Rural Development Projects, Orders Faster Execution and Digital Push in Panchayats 

₹1,249 Crore Investment with Central and State Funding Support

The total project cost has been estimated at ₹1,249 crore, structured under a shared funding model involving the Centre, the state government, and private partners.

Financial Breakdown:

  • Construction Cost: ₹1,249 crore
  • Central Government Grant: ₹464.23 crore
  • State Government Contribution: ₹308.37 crore
  • Private Sector Participation: Remaining capital investment

Additionally, ₹660.17 crore has been allocated for five years of operations, with funding shared between the Centre and the state.

Operation and Maintenance Support for Sustainable Healthcare

For operational sustainability, the Government of India will contribute ₹165.04 crore, while the Jharkhand government will provide up to ₹115.67 crore for maintenance and running costs of district hospitals in Khunti, Giridih, and Jamtara.

Officials said this model will ensure long-term efficiency and improved healthcare delivery in the state.

EY Appointed as Transaction Advisor for Project Execution

To ensure transparency and technical efficiency, the Jharkhand government has appointed global consultancy firm Ernst & Young (EY) as the transaction advisor for the project.

The advisory support is expected to streamline implementation, ensure accountability, and facilitate smooth execution of the PPP-based healthcare infrastructure initiative.

Healthcare Boost to Address Doctor Shortage and Improve Services

Officials said the medical colleges will not only expand healthcare infrastructure but also help address the shortage of doctors in Jharkhand. The introduction of MBBS seats in underserved districts is expected to strengthen the medical education ecosystem and improve rural healthcare access.

Read also: CM Hemant Soren Orders Major Education Reform: 5,000 Schools of Excellence, Faster Teacher Hiring in Jharkhand 


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