Rs 200 Crore Investment: Park Medi World Secures PPP Mandate for 550-Bed Multi-Speciality Hospital in Prayagraj; 45-Year Lease

On Wednesday, Indian equity benchmark indices traded higher, with the benchmark Nifty 50 index rising 8.95 points (0.04 per cent) to 24,343.50. Amid the market movement, Park Medi World share price rose 1.57 per cent to Rs 288.50, gaining Rs 4.45 per share, after the company announced a major capacity expansion through a new hospital project in Prayagraj. 

Park Medi World Wins 550-Bed Hospital Mandate

Park Medi World Limited has been awarded a mandate under the Public–Private Partnership (PPP) model by Prayagraj Municipal Corporation, Uttar Pradesh, for the development and operation of a 550-bed multi-super-speciality hospital in Prayagraj.

Under the concession, Park Group will construct the hospital over a period of two years from the appointed date and operate the facility under a long-term lease of 45 years. The project entails an investment of approximately Rs 200 crore.

Rs 200 Crore Investment With Government Support

According to the company's disclosure, the proposed hospital will add 550 beds to its capacity over a two-year period from the appointed date. The investment requirement is approximately Rs 200 crore, along with a Rs 76.52 crore concession from the State Government. The project will be financed through internal accruals.

The company stated that the additional capacity is intended to address the healthcare requirements of communities in and around the Prayagraj region.

Hospital to Be Developed on 3.22 Acres

The hospital will be developed on a 3.22-acre site allotted by the Municipal Corporation, with an option to secure an additional 2.47 acres from the fifth year following the Commercial Operations Date (COD) for future expansion.

The site is located behind Arail Ghat in Prayagraj and is approximately 3 kilometres from Sangam Ghat by road. According to the company, the facility is expected to become the largest private healthcare facility in the city upon completion.

A key feature of the project is the State Government's support towards Construction. Rs 76.52 crore will be reimbursed by the Municipal Corporation of Prayagraj towards hospital construction, which the company said de-risks approximately 38 per cent of the capital outlay. Park Group will pay an annual concession fee of Rs 18.10 crore, with an annual escalation of 3 per cent.

Uttar Pradesh Capacity to Reach 1,260 Beds

The Prayagraj project forms part of Park Group's broader expansion strategy in Uttar Pradesh. Along with its existing 360-bed hospital in Agra and upcoming 400-bed facility in Gorakhpur, the company expects its total capacity in Uttar Pradesh to reach 1,260 beds upon completion of these projects

Management Commentary

Dr. Ankit Gupta, Managing Director, Park Medi World Limited, said, “Being selected by the Government of Uttar Pradesh to develop this 550-bed hospital in Prayagraj under the PPP framework is both a privilege and a responsibility.”

He added that the partnership will allow the company to provide high-quality and affordable tertiary care to the region, while the State's construction support and long-term concession reflect the company's focus on disciplined, capital-efficient growth and partnerships with the government to strengthen healthcare infrastructure across North India.

About Park Group

Park Group is North India's second-largest hospital chain, according to the company's release, and currently operates 17 hospitals with a combined capacity of approximately 4,300 beds. Including the proposed Prayagraj facility and other expansion plans, the Group expects its total capacity to reach approximately 6,300 beds.
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The Group has a presence across 15 key cities and offers clinical services spanning cardiology, neurology, oncology, orthopaedics, gastroenterology, critical care, nephrology, organ transplants, and women and child health.

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Disclaimer: The article is for informational purposes only and not investment advice.