Jagan Reddy warns of arrests over Naidu's medical college privatisation plan
Synopsis
Jagan Mohan Reddy has accused Chandrababu Naidu of running a 'well-planned scam' by handing over government medical colleges to private players — with land leased at ₹100 an acre, ₹1,630 crore in public VGF, and even government-paid staff salaries. The YSRCP chief's threat of arrests if his party returns to power signals that healthcare privatisation will be a central battleground in Andhra Pradesh's next political cycle.
Key Takeaways
Jagan Mohan Reddy accused Chief Minister N.
Chandrababu Naidu of privatising government medical colleges under a PPP model on 11 November 2026 .
Jagan alleged government land is being leased for as little as ₹100 per acre and ₹1,630 crore in public funds committed as Viability Gap Funding (VGF).
He claimed the government would pay staff salaries for two years , costing approximately ₹120 crore per college .
The YSRCP government had reportedly established 17 new medical colleges , with the remaining nine completable at ₹1,000 crore per year .
Jagan warned of legal action and arrests against those involved if YSRCP returns to power.
More than one crore people reportedly signed a YSRCP-organised petition opposing the privatisation.
YSR Congress Party (YSRCP) president and former Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy on Wednesday, 11 November launched a sharp attack on Chief Minister N. Chandrababu Naidu, alleging that the Telugu Desam Party (TDP)-led government is handing over government medical colleges to private players under the cover of a Public-Private Partnership (PPP) model — and warned of legal action, including arrests, if YSRCP returns to power.
The Allegation
In a post on social media platform X, Jagan Mohan Reddy alleged that government medical colleges — institutions meant to provide free treatment to the poor — are being transferred to private entities in what he described as a 'well-planned scam.' He pointed out that one crore people had signed a petition organised by YSRCP opposing this privatisation drive, yet the Naidu government has pressed ahead.
'Yet you are pressing ahead. This is unjust. We completely oppose the privatisation of government medical colleges. When our government returns to power, we will take legal action against everyone involved in this matter and will not hesitate to make arrests. If you try to loot public assets through scams, people will not remain silent. They will teach you a fitting lesson,' Jagan said in his post.
Financial Details Cited
Jagan Reddy went on to detail what he characterised as the financial dimensions of the alleged scam. According to his post, government land is being leased to private players for as little as ₹100 per acre, more than half the medical seats could be sold at private rates, and ₹1,630 crore in public funds is being committed as Viability Gap Funding (VGF). He further alleged that the state government would pay the salaries of doctors, professors, and staff for two years — amounting to roughly ₹5 crore per month, or ₹120 crore over two years per college.
'The land belongs to the government. The buildings are being constructed with government funds. The VGF will also come from public money. The government will even pay the staff salaries. If this is not a scam carried out in the name of private institutions, then what is it?' the former Chief Minister asked.
YSRCP's Record on Medical Colleges
Reddy cited his own government's healthcare expansion record, stating that the YSRCP administration had established 17 new medical colleges, operationalised five, and prepared three more for classes. He argued that the remaining nine colleges could be completed with an investment of ₹1,000 crore per year, questioning why the Naidu government chose privatisation instead.
He described the colleges as teaching hospitals designed to provide quality, free multispecialty treatment to the poor, with half the seats filled through the convener quota and the remainder at fees significantly lower than private institutions. He also said these hospitals were intended to connect with area hospitals, Community Health Centres (CHCs), Primary Health Centres (PHCs), and village clinics — forming a district-wide healthcare network.
Broader Impact on Public Healthcare
Jagan Reddy argued that a robust public healthcare network would have compelled private hospitals to offer more affordable treatment. He accused the Naidu government of having already weakened the public healthcare system, adding that the privatisation of medical colleges would further erode access to affordable care for ordinary citizens. This comes amid a broader political confrontation between the YSRCP and the ruling TDP coalition in Andhra Pradesh, which has intensified since the change of government earlier this year.
The Naidu administration has not yet issued a formal response to the specific financial figures cited by Jagan Reddy. How the state government addresses these allegations is likely to shape the debate around healthcare policy in Andhra Pradesh in the months ahead.
Point of View
Not just hold the government accountable today. The specific financial figures he cites — ₹100-an-acre land leases, ₹1,630 crore in VGF, government-paid salaries — are potent if accurate, but remain unverified and uncontested on record by the Naidu administration. The deeper question this episode surfaces is structural: Andhra Pradesh, like many states, faces a genuine tension between expanding medical education and funding it sustainably. PPP models are not inherently illegitimate, but the terms Jagan describes — if correct — do warrant public scrutiny. The fact that over a crore signatures were gathered in opposition suggests this is not a niche concern, and the Naidu government's silence on the specifics is a political liability it cannot hold indefinitely.
NationPress
11 Nov 2026
Frequently Asked Questions
What is Jagan Reddy's allegation against Chandrababu Naidu on medical colleges?
Jagan Mohan Reddy has alleged that the Naidu government is handing over government medical colleges to private entities under a PPP model, describing it as a 'well-planned scam.' He claims government land is being leased for ₹100 an acre, ₹1,630 crore in public funds is being given as Viability Gap Funding, and the state will even pay private operators' staff salaries for two years.
What action has Jagan Reddy threatened over the medical college privatisation?
Jagan Reddy has warned that if YSRCP returns to power, his government will take legal action against all those involved in the privatisation and will not hesitate to make arrests. He made the warning in a post on social media platform X on 11 November.
How many medical colleges did the YSRCP government establish in Andhra Pradesh?
According to Jagan Reddy, the YSRCP government established 17 new medical colleges, operationalised five of them, and had three more ready to begin classes. He argued the remaining nine could be completed with an investment of ₹1,000 crore per year, making privatisation unnecessary.
What is the Viability Gap Funding (VGF) controversy in Andhra Pradesh's PPP medical college plan?
Jagan Reddy alleges that ₹1,630 crore in public money is being committed as Viability Gap Funding to private operators who take over government medical colleges. He argues that since the land, buildings, and even staff salaries are publicly funded, the arrangement amounts to handing over public assets to private players at taxpayer expense.
What was the public response to the medical college privatisation in Andhra Pradesh?
According to Jagan Reddy, more than one crore people signed a petition organised by YSRCP opposing the privatisation of government medical colleges. Despite this, he alleged, the Naidu government has continued to press ahead with the PPP plan.
