Key Transaction Details

Project Award

  • The company has been awarded a mandate under the PPP model by Prayagraj Municipal Corporation, Uttar Pradesh
  • Project involves development and operation of a 550-bed multi-super-speciality hospital in Prayagraj, Uttar Pradesh

Concession Terms

  • Construction period: Two years from the appointed date
  • Operating term: 45-year long-term lease
  • Total investment: Approximately INR 200 crore
  • State government subsidy: INR 76.52 crore towards hospital construction
  • Annual concession fee: INR 18.10 crore with 3% annual escalation

Project Specifications

  • Bed capacity: 550 beds
  • Land area: 3.22-acre site allotted by Municipal Corporation
  • Expansion option: Additional 2.47 acres available from fifth year after Commercial Operations Date
  • Location: Strategically located behind Arail Ghat, approximately 3km from Sangam Ghat by road (0.5km by boat)

Financing

  • Mode of financing: Internal accruals
  • Capital outlay de-risking: 38% of capital outlay covered by state subsidy (INR 76.52 crore)

Strategic Rationale

  • The additional bed capacity will cater to healthcare needs of communities in and around Prayagraj region
  • Uttar Pradesh represents India's largest state by population with healthcare infrastructure below national average
  • Prayagraj serves as a major administrative, educational and cultural hub with substantial catchment area

Uttar Pradesh Expansion Strategy

  • This project forms the third pillar of Park Group's Uttar Pradesh strategy
  • Combined capacity in Uttar Pradesh: 1,260 beds (including 360-bed Agra hospital and 400-bed Gorakhpur facility)
  • Positions the group as one of the leading private healthcare providers in the state

Company Background

  • Park Group is North India's 2nd largest hospital chain
  • Current operational capacity: 17 hospitals with ~4,300 beds
  • Additional projects: 5 hospitals being integrated and 3 existing units expanding, adding ~2,000 beds
  • Expected total capacity: ~6,300 beds after completion of all projects
  • Geographic presence: 15 cities across North India with expansion into Zirakpur, Gorakhpur, Prayagraj, and Rohtak

Management Commentary

Dr. Ankit Gupta, Managing Director, stated: "Being selected by the Government of Uttar Pradesh to develop this 550-bed hospital in Prayagraj under the PPP framework is both a privilege and a responsibility. Uttar Pradesh is India's largest and among its most under-served healthcare markets, and this partnership allows us to bring high-quality, affordable tertiary care to a region that needs it."