The Union Cabinet on November 22 approved the setting up of a medical college at Silvassa in the Union territory of Dadra and Nagar Haveli.

"The Cabinet has approved a capital cost of Rs 189 crore for the setting up of a medical college, to be incurred in two years -- Rs 114 crore for 2018-19 and Rs 75 crore for 2019-20," Union Finance Minister Arun Jaitley said at a press conference.

It will increase the availability of doctors and address the issue of shortage of doctors. It will also enhance medical education opportunities for students and result in optimal utilization of the existing infrastructure of district hospitals and improve tertiary care facilities, he added.

With a yearly intake capacity of 150 students, the project will be completed by 2019-20 and the construction and capital expenditure will be incurred as per the norms of the Medical Council of India (MCI) and extant guidelines of the Ministry of Health and Family Welfare. According to an official release, the annual recurring expenditure for the medical college shall be managed within the budget provision for the Union territory.