16-07-2025
World Bank nod for $477 million loan for health infra in Telangana
HYDERABAD: In a major relief to the state government, the World Bank has agreed to lend $477 million (approximately `4,000 crore) to strengthen the healthcare infrastructure in Telangana. The state government had sought the loan in 2024 to upgrade medical facilities, enhance service delivery and address critical health challenges.
The bank will extend the loan to the state government under the 'Telangana Strategic Vision for Attaining Sustainable Transformation in Healthcare' project. Sources said that the appraisal of the loan will be in November 2025. Its final approval is expected in February 2026. The state Health, Medical and Family Welfare department (DoHMFW) will act as the implementing agency.
The total cost of implementing the project is $1,380.19 million, of which $477 million will be financed by the World Bank. The remaining $904.19 million will be contributed by the state.
The proposed programme has identified four entities, namely DoHMFW, Commissioner of Health and Family Welfare, Director of Public Health, and Director of Medical Education, to which the result areas will be linked. The budget lines aligned with programme objectives were identified to define the government programme, valued at $4.9 billion over a six-year period.
New OGH among infra projects
A subset of these expenditure categories — covering the delivery of primary, secondary, and tertiary health services; reproductive, maternal, newborn, and adolescent health (RMNCH); non-communicable diseases (NCDs); and the supply of medicines — was used to define the proposed programme, valued at $1.38 billion over six years. This represents 28 per cent of the overall government programme.
The cost estimate for the proposed programme includes 14 components: trauma care centres; dialysis centres; vascular access centres; simulation and skill labs for emergency care; integrated quality control laboratories; enhancement of diagnostic services; organ retrieval and storage centres (including burn centres and skin and cornea banks); improvements in specialised maternal and child health (MCH) services, including the Arogya Mahila programme and cochlear implant centres; drug de-addiction centres; TIMS and super-specialty hospital equipment; equipment for the new Osmania Hospital; health cards and project management units (PMU); and cancer care services.
