The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to Phase-III of the Centrally Sponsored Scheme (CSS) aimed at bolstering and enhancing existing government medical colleges, standalone postgraduate institutes, and hospitals across India.
This new phase of the initiative is set to increase the number of postgraduate (PG) seats by 5,000 and undergraduate (MBBS) seats by 5,023, with an increased cost ceiling of Rs. 1.50 crore per seat. The total financial outlay for the schemes is Rs. 15,034.50 crore for the period 2025-26 to 2028-29, with the central share amounting to Rs. 10,303.20 crore and the state share at Rs. 4,731.30 crore.
The primary goal of this expansion is to address the shortage of specialist doctors and improve healthcare access in underserved and rural areas of the country. By increasing the availability of medical seats, introducing new specialities, and enhancing the overall quality of medical education and training, the government aims to strengthen the healthcare system and provide more opportunities for aspiring medical professionals.
The Ministry of Health & Family Welfare will release implementation guidelines to ensure completion of the project by 2028-29. This move comes amidst the backdrop of India’s growing medical education infrastructure, which currently includes 808 medical colleges with 1,23,700 MBBS seats and over 43,000 PG seats added in the last decade.
In addition to this initiative, the government has also established twenty-two new AIIMS institutions under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) to further enhance tertiary healthcare delivery and produce highly skilled medical professionals. The recent issuance of the Medical Institution (Qualifications of Faculty) Regulations 2025 further highlights the government’s commitment to improving the quality of medical education by focusing on faculty recruitment based on competency and inclusivity.
Through these strategic measures, the government aims to expand the pool of medical professionals, strengthen the healthcare workforce, and ensure equitable access to quality healthcare services for all citizens across the nation.

