The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Health and Family Welfare relating to the centrally sponsored scheme for up-gradation of existing State Government/Central Government medical colleges to increase the Bachelor of Medicine and Bachelor of Surgery (MBBS) seats in the country.

This will result in the increase of about 10,000 seats at a total cost of Rs.10,000 crore, with a proposed central assistance share of Rs.7,500 crore and State/Union Territory share of Rs.2,500 crore.

The funding pattern will be 90:10 by Central and State Governments respectively for North Eastern States and special category States and in the ratio of 70:30 for other States. The total cost of one MBBS seat is approximately Rs.1.20 crore.

Centrally sponsored scheme expands MBBS seats through differentiated central state funding and specified unit cost guidance. A centrally sponsored scheme upgrades existing State and Central Government medical colleges to expand MBBS seats, allocating central assistance alongside required State/UT contributions; funding patterns differ with a higher central share for North Eastern and special category States and a lower central share for other States, and the scheme specifies an approximate unit cost per MBBS seat to guide budgeting and central assistance allocation.