Amaravati, The Andhra Pradesh government is preparing to spend Rs 17,300 crore on revamping the existing government hospitals apart from establishing 16 new medical colleges under the 'Nadu-Nedu' initiative.

Chief Minister Y.S. Jagan Mohan Reddy held a review meeting on the Nadu-Nedu programme in hospitals and sought the details for establishing new medical colleges and developing the village clinics, primary health centres (PHCs), community health centres and others.

As first instalment, Reddy directed the officials to immediately release Rs 5,472 crore for renovation work.

"There will be no compromise on the quality of infrastructure or the services being provided in the (government) hospitals," the CM said.

He directed the officials to finalise tenders for the new medical colleges by January and advised them to study the best practices in their construction, following environment-friendly practices.

Officials apprised the CM that tenders for medical colleges at Paderu, Piduguralla, Machilipatnam and Pulivendula will be finalised by November-end.

For the medical colleges in Bapatla, Narsapuram, Eluru, Anakapalli, Markapuram, Madanapalle and Nandyal, tenders will be finalised by December.

Similarly, for the medical colleges in Vizianagaram, Rajahmundry, Penukonda, Amalapuram and Adoni, tenders will be finalised by January.

The state government is expected to utilise Rs 7,500 crore on constructing all these colleges.

On Aarogyasri referral programme, the CM said village secretariats will act as referral centres on temporary basis, until the establishment of YSR Health Clinics.