The central government has sanctioned Rs 100 crore to the Karnataka government as part of the Pradhana Mantri Swasthya Surkasha Yojana (PMSSY). The funds will be utilized to upgrade the Bangalore Medical College to the rank of the All India Institute of Medical Sciences (AIIMS). The total upgradation of the project involves Rs 120 crore and the state government is expected to chip in Rs 20 crore.

The project upgradation is being executed by the Centre through Hindustan Latex Limited (HLL) which has been selected through competitive basis. However this project monitoring team also includes the medical education secretary of the state.

Out of the total funds of Rs 120 crore, government will allocate Rs 49.99 crore for equipment and computerization. The construction of the specialty block will need Rs 40 crore. An amount to Rs 10 crore has been allocated for the miscellaneous expenditure. Karnataka government has made a commitment of Rs 20 crore. With this amount it will construct an emergency Casualty & Trauma Centre at a cost Rs 12 crore and Twin Tower blocks for specialties in centenary building.

Going by the cost escalation of the project, the Union government has decided to increase its support by another Rs 50 crore. In this regard, it has asked the state government to send in a proposal for the increase in allocation.

Of the Rs 50 crore central government grant, Karnataka government will allocate Rs 20 crore to set up the Cardio thoracic wing, stated Dr GT Subhash, dean and director, Bangalore Medical College and Research Institute.

Another project is the construction of the Nursing College and Hostel with the Victoria Hospital campus in coordination with HLL. The entire project is scheduled for completion by October 2009.