Incentive Scheme for Establishment of New Super Specialty Hospital in Private Sector
10% capital subsidy on equipment + 4% interest subvention · new 50-bed super specialty hospital · Gujarat private sector
Private investors, trusts, and registered doctors setting up a new super specialty hospital with 50+ beds in underserved areas of Gujarat can receive a capital subsidy, interest relief, and electricity duty reimbursement from the state government. The scheme, launched in December 2016, is designed to bridge the gap in high-end medical facilities in remote parts of Gujarat. Submit a physical application to the Commissioner of Health & Medical Education, Gandhinagar, with a ₹20,000 scrutiny fee by Demand Draft.
About This Scheme
Private investors, trusts, and registered doctors setting up a new super specialty hospital with 50+ beds in underserved areas of Gujarat can receive a capital subsidy, interest relief, and electricity duty reimbursement from the state government. The scheme, launched in December 2016, is designed to bridge the gap in high-end medical facilities in remote parts of Gujarat. Submit a physical application to the Commissioner of Health & Medical Education, Gandhinagar, with a ₹20,000 scrutiny fee by Demand Draft.
Full official description
Launched on 13th December 2016, the "Incentive Scheme for Establishment of New Super Specialty Hospital in Private Sector" by the Health & Family Welfare Department, Government of Gujarat, aims to address the shortage of high-end medical facilities in remote areas by incentivizing private and non-governmental organizations to establish super specialty hospitals. The scheme provides 10% capital subsidy on medical equipment loans (up to ₹10 crore), 4% interest subvention (max ₹40 crore loan) for 7 years, and reimbursement of electricity duty for 5 years. Eligible entities include registered doctors, firms, trusts, and corporations.
Benefits
- 10% capital subsidy on bank loans for medical equipment, up to ₹10 crore (disbursed after hospital is operational)
- 4% interest subvention on loans up to ₹40 crore for 7 years (paid in 6 annual installments after 1-year grace period)
- 100% electricity duty reimbursement for 5 years (claimed quarterly)
💡 Why Startups Should Care
If your healthcare startup is planning a capital-intensive hospital build in Gujarat, this scheme can cut equipment costs by 10% and reduce your loan interest burden by 4% — on a ₹40 crore loan, that's ₹1.6 crore saved annually in interest alone.
Who Can Apply (Eligibility)
- Registered doctors (Gujarat Medical Council), partnership firms, companies, trusts, societies, or cooperatives
- Hospital must have at least 50 total beds, including a minimum of 10 super specialty beds
- Must offer super specialty services such as cardiology, neurology, or oncology
- Loans must be for construction or medical equipment only — land and working capital costs are excluded
- Government and semi-government bodies are not eligible
Exclusions
- Not available to Government or Semi-Government bodies
How to Apply
- Download the application form from gujhealth.gujarat.gov.in.
- Fill in all mandatory fields and attach self-attested documents.
- Pay a ₹20,000 scrutiny fee via Demand Draft.
- Submit the form and fee DD to: Commissioner, Health & Medical Education, Dr. Jivraj Mehta Bhavan, Gandhinagar.
- A State-Level Committee scrutinises applications; a Technical Group conducts physical inspections.
- Once approved, submit quarterly utilisation reports and maintain services for 7 years.
Frequently Asked Questions
Which specific medical specialties are covered under this super specialty hospital scheme's definition?
Benefits include:
100% reimbursement of electricity duty.
Quarterly reimbursement payments.
Duration of 5 years from hospital commencement.
Separate notification for claim procedures.
What are the minimum infrastructure requirements that a hospital must meet to qualify as a super specialty facility under this scheme?
To qualify, hospitals must have:
- Minimum 10 dedicated beds for super specialty care.
- Total bed strength of at least 50 beds.
- Proper infrastructure for diagnosis and treatment in at least one recognized super specialty.
What types of financial assistance are available under this scheme for establishing new super specialty hospitals?
The scheme offers three forms of financial support:
- 10% capital subsidy on bank loans for medical equipment (max ₹10 crore).
- 4% interest subvention on authorized loans (max ₹40 crore loan) for 7 years.
- Full reimbursement of electricity duty for 5 years.
What are the key eligibility criteria for private healthcare providers to avail benefits under this scheme?
Eligible applicants must be:
- Doctors registered with Gujarat Medical Council.
- Registered partnership firms/institutions.
- Companies, charitable trusts, societies or cooperative institutions.
- Entities establishing completely new facilities (existing hospitals are ineligible).
Which expenses are covered and excluded under the bank loan assistance component of this scheme?
Covered expenses:
- Construction loans for new hospital buildings.
- Loans for medical equipment purchase.
Excluded expenses:
- Land acquisition costs.
- Working capital.
- Furniture/air conditioners.
- Maintenance/repair costs.
What are the mandatory operational commitments that beneficiaries must adhere to under this scheme?
Key requirements include:
- Maintaining super specialty services for minimum 7 years.
- Not relocating purchased medical equipment.
- Hiring qualified medical/paramedical staff.
- Joining the MA/MA Vatsalya Scheme.
- Complying with all healthcare regulations.
How does the interest subvention component of this scheme work for eligible hospitals?
The scheme provides:
- 4% interest relief on approved bank loans.
- Maximum loan ceiling of ₹40 crore.
- Subvention paid annually for 7 years (first payment after 1 year of operation).
- Total of 7 installment payments.
What is the application process and timeline for availing benefits under this super specialty hospital scheme?
Applicants must:
- Submit proposal with ₹20,000 scrutiny fee via demand draft.
- Get registration approval from Commissioner of Health.
- Begin hospital operations before 31/3/2022.
- Post-commencement, apply for financial assistance.
- Undergo technical committee verification.
What are the key conditions regarding electricity duty reimbursement under this scheme?
Benefits include:
- 100% reimbursement of electricity duty.
- Quarterly reimbursement payments.
- Duration of 5 years from hospital commencement.
- Separate notification for claim procedures.
What legal obligations and undertakings must beneficiaries comply with under this scheme?
Mandatory requirements:
- Submit ₹100 stamp paper undertaking
- Maintain hospital for minimum 7 years
- Not avail similar state government subsidies
- Return all assistance if conditions are violated
- Allow periodic inspections by authorities
How does the scheme prevent double-dipping or misuse of government incentives?
Safeguards include:
- One-time assistance only.
- Exclusion if similar benefits received.
- Bar on equipment subsidy duplication.
- Mandatory 7-year operational commitment.
- Recovery provisions for violations.
What is the composition and role of the State Level Committee that oversees this scheme?
The committee comprises:
- Health Commissioner (Chairman).
- Finance Department representative.
- Medical education experts.
- Hospital administrators.
- Technical subject experts.
- Roles include proposal scrutiny, assistance sanctioning, and monitoring compliance.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- ₹20,000 scrutiny fee (Demand Draft)
- Bank loan sanction letter (for construction and equipment)
- Property documents (if applicable)
- Deed of Undertaking on ₹100 stamp paper (committing to 7-year operational continuity)
- Electricity bills (for reimbursement claims)