With the Planning Commission predicting shortage of 0.6 million doctors in the country in the next five years, the Centre is planning to allow foreign medical institutions to set up medical colleges in the country with a view to fill the gap between the demand and supply of manpower.

Besides, the collaboration between foreign educational institutions with Indian partners for conducting training programmes in the country will be approved soon. The government is also looking to push private investment in the sector in a big way with public-private partnerships, sources said.

Health ministry sources said to achieve the targeted doctor-patient ratio of 1:1000, the country will need at least 0.6 million doctors. And there is shortage of 1.03 million nurses to achieve the target of 1:500 ratio in nurses-population. To meet the gap in the number of pharmacists also, the Centre is planning to give financial assistance to the pharmacy institutions for upgradation.

Central assistance will be given for setting up of 230 nursing schools, six colleges, 24 centres of excellence of nursing and four regional institutes. In the paramedical sector, two national level paramedical institutes and six regional level institutes would be set up.

Sources said, relaxation has been given to existing norms for starting new medical colleges and unitary campus concept has been withdrawn. Land requirement continues to be 25 acres, but it is 20 acres for under-served States like Bihar, UP, Rajasthan, Madhya Pradesh, Orissa, North Eastern States, hill States, hilly districts and urban areas cities having population of less than 20 lakh.

Companies registered under Companies Act will now be eligible to set up medical colleges. Private hospitals can start PG courses and teacher student ratio for PG courses has been revised from 1:1 to 1:3 in respect of pre-clinical subjects and certain clinical specialties, while the ratio is 1:2 in respect of remaining clinical subjects.

Recognition of foreign degrees and foreign PG medical qualifications has been granted in respect of five English speaking countries namely USA, UK, Canada, Australia and New Zealand. It is also proposed to introduce National Exit Examination for MBBS students at the end of the course. Renewal of the medical qualification of doctors will be made every five years, sources said.