NMC moves to allow for-profit med colleges Non Profit Tag May No Longer Be Mandatory

NMC moves to allow for-profit med colleges Non Profit Tag May No Longer Be Mandatory

Rema.Nagarajan@timesofindia.com 18.07.2026

For-profit medical colleges may become a reality if the draft amendments to National Medical Commission’s (NMC) regulations for establishing a new medical college go through.

The proposed amendments to Establishment of New Medical Institutions, Assessment & Rating Regulations, 2023, which were placed in the public domain on July 13, include one that will allow companies with the primary objective of profit generation to become eligible to establish medical colleges or medical institutions. Objections and suggestions to the draft are to be submitted within 30 days.

The 2023 regulation allowed only “Section 8 companies” to establish medical colleges. Under Section 8 of Companies Act, such a company is a non-profit organisation in which surpluses can only be reinvested in charitable objectives. The amendment will allow all companies incorporated under Companies Act, 2013, to start medical colleges.

In Jan 2017, the erstwhile Medical Council of India (MCI) amended Establishment of Medical College Regulations, 1999, to allow all companies registered under Companies Act, 1956, to be listed among organisations permitted to set up a medical college.

The same amendment notification also allowed any autonomous body/society/trust to be converted into a company. However, MCI was disbanded and replaced by NMC, constituted in Sept 2019. The fresh regulations for establishment of medical colleges drafted by NMC allowed only Section 8 companies to set up colleges.

In May 2017, Vedanta, the mining conglomerate, established the first private limited medical college, Vedantaa Institute of Medical Sciences, in Palghar through the entity Vedantaa Institutes of Academic Excellence Private Limited. The institute wrote to Maharashtra govt that since it was registered as a private company, it was allowed to make profits and that its fees did not require approval of the state fee regulatory authority. Though the institute was later forced to submit to fee regulation, its fees remain among the highest among private medical colleges in the state ( ₹15.7 lakh for management seats in 2025), barring deemed university colleges.

Ironically, fees charged by deemed university medical colleges, which are established by trusts and societies and are supposed to be non-profit, are among the highest, and states do not have any quota of seats with lower fees in these institutions. Fees charged by these colleges are not controlled by any regulatory body.

GOING EXTRA MILE: The 2023 regulation allowed only ‘Section 8 companies’ to establish medical colleges