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

ISENSSHPS

Published: Oct 2026

5 min read

Reviewed by Navin, Editor · First published: 2 Oct 2026

Incentive Scheme for Establishment of New Super Specialty Hospital in Private Sector
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Written by Navin · Editor, tsmpb.inUpdated: 17 Oct 2026 · How we verify scheme facts

About this health scheme

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.

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 Rs. 10 crore), 4% interest subvention (max Rs. 40 crore loan) for 7 years, and reimbursement of electricity duty for 5 years. Eligible entities include registered doctors, firms, trusts, and corporations.

Benefits at a glance

Scheme nameIncentive Scheme for Establishment of New Super Specialty Hospital in Private Sector (ISENSSHPS)
Launched byHealth & Family Welfare Department
Benefit typeCash (money paid to your bank account)
CategoryHealth
Level / StateState ยท Gujarat
Official portalgujhealth.gujarat.gov.in (link at the end of this page)

Key facts

Scheme forInfra
Application modeOffline
Last dateOngoing (no last date notified)
DBT (direct bank transfer)No
Age18 to 80 years

Who can apply (quick check)

  • ๐Ÿ‘คAll genders
  • ๐ŸŽ‚Age 18 to 80 years
  • ๐Ÿ“Offline

Quick check from official data. Full conditions are in the Eligibility section.

What you receive

Capital Subsidy

  • 10% of bank loans for medical equipment (max Rs. 10 crore).
  • Disbursed post-hospital operationalization.

Interest Subvention

  • 4% interest relief on loans up to Rs. 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.

Who qualifies

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).

Who is not eligible

Excludes Government/Semi-Government Bodies.

Papers to keep ready

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Registration walkthrough

Offline

Step 1: The interested applicant should take a printout of the prescribed format of the application form.

Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

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 Rs. 20,000/- scrutiny fee via Demand Draft.

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.

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).

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 Rs. 10 crore).
  • 4% interest subvention on authorized loans (max Rs. 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 Rs. 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 Rs. 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 Rs. 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.
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