Madhya Pradesh Health Investment Scheme
Madhya Pradesh, the heart of India, is making bold moves to address the state’s healthcare challenges. Recognizing the critical role of health infrastructure in socio-economic development, the state government introduced the Madhya Pradesh Health Investment Scheme Promotion Policy (HSIP) 2025. This visionary policy aims to transform the state’s medical landscape by attracting private investment, improving health outcomes, and bridging regional disparities in healthcare delivery.
Overview of the Health Sector Investment Promotion Policy (HSIP) 2025
The Madhya Pradesh Health Investment Scheme is a targeted initiative by the Department of Public Health and Family Welfare to encourage private players to establish healthcare facilities in underserved areas. It provides a structured incentive framework for developing multi-specialty hospitals, super-specialty hospitals, medical colleges, nursing colleges, and stand-alone diagnostic centers.
The policy is aligned with the state’s goal to provide affordable and accessible healthcare while simultaneously boosting the medical education ecosystem and creating employment opportunities in the healthcare sector.
Objectives of the HSIP 2025 Policy
- Expand healthcare access in remote and underserved districts
- Promote medical education and research by supporting new medical institutions
- Encourage private investment in health infrastructure
- Improve health indicators and patient outcomes across all regions
- Foster public-private partnerships (PPP) in the healthcare sector
Categorization of Districts for Incentives
To ensure balanced development, districts in Madhya Pradesh are divided into three categories based on healthcare infrastructure and service availability:
- Category A: Well-developed districts like Bhopal, Indore, Jabalpur
- Category B: Moderately developed districts like Sagar, Rewa, Ujjain
- Category C: Underserved districts like Barwani, Sidhi, Dindori
The category determines the level of subsidy and investment support granted under the scheme.
Eligible Healthcare Projects
The policy supports a wide range of healthcare and medical education establishments:
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Multi-Specialty Hospitals
- Grade I: Minimum 30 beds and ₹5 crore investment
- Grade II: Minimum 100 beds and ₹15 crore investment
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Super-Specialty Hospitals
- At least 50 beds with 25% dedicated to super-specialty services
- Minimum investment of ₹12 crore
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Medical Colleges
- Minimum capital investment of ₹150 crore
- Includes teaching hospitals, laboratories, and research infrastructure
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Nursing Colleges
- Recognized by the Madhya Pradesh Nursing Council
- Includes postgraduate and specialized nursing education
-
Stand-alone Healthcare Units
- Includes diagnostic labs, rehabilitation centers, and imaging services
- Minimum ₹50 lakh investment with 75% of funds in medical equipment and facilities
Incentives and Subsidies under HSIP 2025
The scheme offers robust incentives to attract private investment:
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Capital Subsidy
Investors can avail up to 40% capital subsidy, disbursed in three phases:
- 25% after project approval and operational readiness
- 25% after accreditation (e.g., NABH, NABL)
- 50% after State Level Empowered Committee (SLEC) clearance
-
Land Allotment and Subsidy
Land is offered at concessional rates through the MP Industrial Development Corporation:
Project Type Category A Category B Category C
Multi-Specialty 20% 30% 40%
Medical Colleges 75% 100% 100%
Nursing Colleges 50% 75% 100%
Note: Land use must be at least 60% for healthcare operations.
3. Fiscal Assistance
- Multi-Specialty Hospitals: Up to ₹20 crore for Category C districts
- Super-Specialty Hospitals: Up to ₹16 crore for Category C
- Medical Colleges: Up to ₹30 crore (infrastructure + hostel support)
- Stand-alone Centers: Up to ₹2 crore (subject to project cost)
Other Key Provisions
- Fast-track single-window clearance for all project approvals
- GST reimbursement on capital goods and construction materials
- 25% subsidy on interest payments for loans up to ₹5 crore for MSMEs
- Human resource support, including assistance in hiring doctors and nurses
- Operational support in terms of electricity and water concessions
Benefits to the Public
The HSIP 2025 scheme not only boosts private sector participation but also directly benefits the citizens of Madhya Pradesh:
- Better access to quality healthcare in rural areas
- Reduction in out-of-pocket expenses on treatment
- Increased availability of doctors, nurses, and specialists
- Development of medical tourism and healthcare jobs
- Growth in diagnostic and rehabilitation services
The Final Thought
The Madhya Pradesh Health Sector Investment Scheme is a progressive step toward bridging the healthcare divide and ensuring equitable services across the state. With structured subsidies, land support, and policy clarity, the government is inviting both Indian and foreign investors to participate in the state’s healthcare transformation.
At Cretum Advisory, we specialize in helping investors, hospital groups, and educational institutions navigate government policies like the HSIP 2025. Our team of experts offers end-to-end assistance—from eligibility assessment, documentation, and land acquisition, to subsidy claims and regulatory compliance. We also provide services like- Accounting & Advisory Services, Startup Consulting, Goods and Services Tax, Income Taxation, Customs, Secretarial, and CFO Services.
📩 For expert consultation on healthcare investments and state policy incentives, reach out to us at info@cretumadvisory.com.
Frequently Asked Questions (FAQs) – Madhya Pradesh Health Sector Investment Scheme (HSIP 2025)
1. What is the Madhya Pradesh Health Sector Investment Scheme (HSIP 2025)?
It’s a state initiative to attract private investment in healthcare infrastructure. It offers subsidies and support to boost the sector.
2. Who is eligible to apply under the HSIP 2025 scheme?
Private hospitals, diagnostic centres, medical and nursing colleges are eligible. They must meet investment and infrastructure criteria.
3. What types of healthcare projects are supported under this scheme?
Projects include multi/super-specialty hospitals, medical colleges, and diagnostic labs. Rehab and nursing institutions are also covered.
4. What is the maximum subsidy available for hospitals and colleges?
Hospitals can receive up to ₹20 crore, and colleges up to ₹30 crore. Amounts vary by project and location.
5. What are the key incentives offered under HSIP 2025?
Incentives include capital subsidies, land allotment, GST reimbursement, and interest subsidies. Single-window clearances are also offered.
6. Is land available under the policy?
Yes, subsidized land is offered through MPIDC. Rates depend on the project type and location.