Even as YSR Congress party president and former Andhra Pradesh chief minister Y S Jagan Mohan Reddy on Thursday is putting up a big road show from Visakhapatnam to Narsipatnam to protest against the alleged privatisation of medical colleges, the state high court indirectly found fault with his stand.
On Wednesday, a high court bench comprising chief justice Dhiraj Singh Thakur and justice Cheemalapati Ravi strongly endorsed the Chandrababu Naidu government’s decision to construct 10 medical colleges under the Public-Private Partnership (PPP) model.
The bench refused to grant a stay on the tender process for the construction of medical colleges in PPP mode.
It observed that policy decisions — such as adopting a PPP model — are beyond judicial interference unless unconstitutional or illegal.
“If the government chooses this model due to lack of funds, what is wrong with it?” the bench asked.
The judges said the government cannot always approach banks for loans. Many district court complexes remain incomplete due to fund shortages.
“If the state has to build hospitals and colleges entirely on its own, it may take years. Public-private partnership is a pragmatic solution,” the bench remarked.
The court also noted that partial government participation, rather than full privatization, ensures accountability and public oversight.
The order came in response to a Public Interest Litigation filed by Dr Kurra Vasundhara of Tadepalli, Guntur district, challenging the government’s G.O. 590 issued on September 9, 2025.
The G.O. approved the establishment of new medical colleges at Adoni, Madanapalle, Markapur, Pulivendula, Penukonda, Palakollu, Amalapuram, Narsipatnam, Bapatla, and Parvathipuram through PPP mode.
Dr. Vasundhara, represented by senior advocate Sriram, argued that the move endangered public interest and amounted to backdoor privatization. He noted that the winning bidder would operate the institutions for 33 years.
The bench dismissed the argument, stating: “administrative approval is not enough; the government must have the financial capacity to spend such large amounts. If it lacks funds, partnership is a valid approach.”
The court directed the chief secretary, principal secretary (health, medical and family welfare), and managing directors of AP Medical Services Infrastructure Development Corporation and AP Medical Education and Research Corporation to file detailed counters. The matter will next be heard on October 29.
