Maharashtra Metro Rail Corporation Limited (Maha-Metro) has issued the Letter of Acceptance (LoA) to M/s Quality Care India Limited (QCIL), part of the CARE Group of Hospitals, for setting up a large multi-specialty hospital in Nagpur under the Public-Private Partnership (PPP) model.The proposed hospital, with a capacity of more than 350 beds, will come up on Maha-Metro-owned land near the Kasturchand Park Metro Station. QCIL will invest over ₹600 crore in the project, which is expected to create direct employment for nearly 1,500 to 1,800 people and substantially strengthen healthcare services in the city.QCIL was declared the highest successful bidder in the tender process floated by Maha-Metro, following which the project was finalised. As per the agreement, the company will enjoy leasehold rights over the land for a period of 60 years and will pay Maha-Metro a cumulative amount of over ₹1,850 crore during the lease tenure. The Net Present Value (NPV) of the total payable amount has been assessed at ₹131.35 crore.Under the financial terms, QCIL will pay an upfront premium of ₹51 crore to Maha-Metro. Additionally, an annual concession fee of ₹5.85 crore will be paid for 60 years, with a compounded annual escalation of 5 per cent. The company will also pay an annual lease rent of ₹50 lakh, which will similarly increase by 5 per cent every year on a compounding basis.Maha-Metro will also receive building sanction charges as the Special Planning Authority, estimated to be between ₹35 crore and ₹40 crore. Besides this, QCIL will reimburse Maha-Metro ₹56.80 crore towards expenses already incurred on the construction of the foundation and parking facilities. The reimbursement will be made in four instalments of ₹14.20 crore each.The project site measures 7,202 square metres and has a development potential of over 3.50 lakh square feet. With the foundation and parking already in place, the hospital project is expected to be completed within three years.Quality Care India Limited, which operates CARE Hospitals, is a prominent multi-specialty healthcare provider in the country. Established in 1997 by a group of cardiologists and headquartered in Hyderabad, CARE Hospitals currently runs 16 healthcare facilities across seven cities in six states, with a total capacity exceeding 3,000 beds.The Letter of Acceptance is being formally handed over to QCIL on February 7, 2026, at the “Advantage Vidarbha Summit,” in the presence of Maharashtra Chief Minister Devendra Fadnavis and Union Minister for Road Transport and Highways Nitin Gadkari.
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