Now for-profit companies will also be able to open private medical colleges, will this make medical education more expensive?

NMC draft 2026: There has been a major change in the rules related to medical education in the country. The National Medical Commission has issued a draft to amend the rules related to opening new medical colleges. If this proposal is implemented, then the right to open medical colleges will not be limited only to non-profit institutes, but for-profit companies registered under the Companies Act 2013 will also be able to establish medical colleges. Objections and suggestions have also been sought on this draft within 30 days.

What is the new proposal of NMC?

Currently, under the applicable rules, only Section 8 companies are allowed to open medical colleges. These are such non-profit companies, whose additional income can be spent only in the development of the institution or in social work. But after the proposed amendment, any company registered under the Companies Act 2013 will be allowed to open a medical college.

Such a change was made in 2017 also?

This is not the first time that the issue of giving permission to companies to open medical colleges has come to light. In 2017, the then Medical Council of India also amended the rules and allowed companies registered under the Companies Act 1956 to open medical colleges. At the same time, the option to convert the trust and society into a company was also given. However, after the formation of NMC in 2019, new rules came into effect and again the permission was limited to Section 8 companies only.

Why did the government consider this change necessary?

The government’s argument has been that due to the non-profit condition, big companies avoid investing in the field of medical education. It has also been said that profit making work is already going on in many institutions, but it is not revealed in a transparent manner. In such a situation, the system of legally granting permission to companies will be more clear and the government will also get revenue in the form of tax.

Questions were also raised regarding fees

Many deemed universities and medical colleges of the country are run under trusts and societies, but their fees are quite high. States do not have direct control over the fees of these institutions and government quota seats with low fees are also not available in them. In such a situation, after the new proposal, a new debate has started regarding the cost of medical education. At the same time, the Supreme Court had said in its decisions of 1993 and 2001 that education cannot be made a business and institutions are not allowed to make profit. However, institutions were given the freedom to hold appropriate conferences for their expansion and development of infrastructure. Till the year 2009, the government also had the same stand that education cannot be a medium for earning profit. In 2010, the central government allowed companies to open medical colleges, but made it clear that if the institutions commercialize education, their permission could be withdrawn.

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Will medical education become more expensive?

After this proposal of NMC, it is believed that investment in medical education from the private sector can increase and new medical colleges can be opened. However, along with this the question is also being raised whether medical fees will increase further with the entry of profit making companies. At present this is only a draft and the final decision will be given after considering public suggestions and objections, but there can also be a debate regarding the fees.

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