The Centre on April 11 accepted the Punjab government's proposal for setting up a government medical college in Mohali, an official statement said.

Chief Minister Amarinder Singh welcomed the development, saying the establishment of the medical college would help provide the best health and diagnostic services to the patients of the nearby areas, an official release said. Health and Medical Education Minister Brahm Mohindra said all efforts would be made to ensure the timely completion of the project. The Government of India would release Rs 113.40 crore in three installments for equipment and infrastructural development of the college, the release said.

The Punjab government has already made provisions for the project in its budget for 2018-19. The central government had launched the scheme for establishment of new medical colleges and upgrading hospitals back in 2014. The upcoming medical college would be established at a cost of Rs 374.86 crore, of which Rs 325.26 crore would be spent on building and infrastructure, and Rs 49.60 crore on equipment, as per the project report submitted by Punjab Health Systems Corporation.

The college with 100 MBBS seats would be developed over 20.85 acres of land, of which 9.81 acres is earmarked for civil hospital and 4.20 acres for the State Institute of Health & Family Welfare at Mohali. Apart from this, a stretch of 6.84 acres in Jujhar Nagar village has been acquired just 1.5 km from the District Hospital, Mohali. The spokesperson said the chief minister had directed the Health Department to acquire more land if needed for the project.