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Incentive Scheme for Establishment of New Super Specialty Hospital in Private Sector

The scheme offers financial incentives (capital subsidy, interest subvention, and electricity duty reimbursement) to private/NGO entities establishing new super specialty hospitals (50+ beds) in Gujarat, targeting underserved areas.

Ministry / Department
Health & Family Welfare Department
Level
State
Benefit type
other
Last verified: 18 Jun 2026

What is Incentive Scheme for Establishment of New Super Specialty Hospital in Private Sector?

The scheme offers financial incentives (capital subsidy, interest subvention, and electricity duty reimbursement) to private/NGO entities establishing new super specialty hospitals (50+ beds) in Gujarat, targeting underserved areas.

Benefit
> Capital Subsidy • 10% of bank loans for medical equipment (max ₹10 crore). • Disbursed post-hospital operationalization. > Interest Subvention • 4% interest relief on loans up to ₹40 crore for 7 years. • Paid in 6 annual installments after a 1-year grace period. > Electricity Duty Reimbursement 100% reimbursement for 5 years (quarterly claims). > Employment Generation Mandates hiring qualified medical/paramedical staff. > Disbursement • Capital Subsidy: After Equipment Installation and Hospital Launch.- Interest Subvention: Annual Installments Post 1-Year Grace Period.- Electricity Reimbursement: Quarterly Claims. <br>
Level
State — Gujarat
Ministry / Dept.
Health & Family Welfare Department
Benefit type
other
Key eligibility
> The Following Entities Are Eligible
Last verified
18 Jun 2026

Overview

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.

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Benefits

> Capital Subsidy

10% of bank loans for medical equipment (max ₹10 crore).

Disbursed post-hospital operationalization.

> Interest Subvention

4% interest relief on loans up to ₹40 crore for 7 years.

Paid in 6 annual installments after a 1-year grace period.

> Electricity Duty Reimbursement

100% reimbursement for 5 years (quarterly claims).

> Employment Generation

Mandates hiring qualified medical/paramedical staff.

> Disbursement

Capital Subsidy: After Equipment Installation and Hospital Launch.- Interest Subvention: Annual Installments Post 1-Year Grace Period.- Electricity Reimbursement: Quarterly Claims.

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Eligibility

  • > The Following Entities Are Eligible
  • Registered Doctors (Gujarat Medical Council).
  • Partnership Firms, Companies, Trusts, Societies, Cooperatives.
  • > Hospital Requirements
  • 50+ Total Beds,including 10+ Super Specialty Beds.
  • Covers Specialties Like Cardiology, Neurology, Oncology, etc. (List Expandable by Government).
  • > Loan Conditions
  • Only Loans for Construction/Equipment (Excludes Land/Working Capital).
  • <br>
Area: GujaratBenefit: other

Documents Required

  • ₹20,000/- Scrutiny Fee (Demand Draft).
  • Bank Loan Sanction Letter (for Construction/equipment).
  • Property Documents (if Applicable).
  • Deed of Undertaking (₹100/- Stamp Paper) Committing to:
  • 7-year Operational Continuity.
  • Compliance With Staffing and Service Norms.
  • Electricity Bills (for Duty Reimbursement).
  • <br>

How to Apply

  1. Step 1: Offline — Step 1

    The interested applicant should take a printout of the prescribed format of the application form.

  2. Step 2: Offline — Step 2

    In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

  3. Step 3: Offline — Step 3

    Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to - *Commissioner, Health & Medical Education, Dr. Jivraj Mehta Bhavan, Gandhinagar*. Pay ₹20,000/- scrutiny fee via Demand Draft.

  4. Step 4: Offline — Step 4

    Request a receipt or acknowledgement from the concerned authority to whom the application has been submitted. Ensure that the receipt contains essential details such as the date of submission. <br> Approval & Verification - State-Level Committee scrutinizes applications. - Technical Group conducts physical inspections. Compliance - Submit quarterly utilization reports. - Maintain services for 7 years (penalty: repayment if violated). <br>

FAQ

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. <br>

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. <br>

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. <br>

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). <br>

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. <br>

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. <br>

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. <br>

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. <br>

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. <br>

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 <br>

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. <br>

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. <br>

Sources & References

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