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ADB commits $18.4 million for healthcare access in North India
The funding aims to amplify access to affordable and high-quality healthcare
ADB to support Indian healthcare system / Image ADB
In a significant move to address healthcare disparities in northern India, the Asian Development Bank (ADB) has inked an agreement with Cygnus Medicare Private Limited, pledging 1.5 billion Indian rupees (approximately $18.4 million) in debt financing.
The funding aims to amplify access to affordable and high-quality healthcare, particularly in tier-2 and tier-3 cities.
The agreement encompasses the subscription of nonconvertible debentures, supporting Cygnus’ ambitious plans, according to a release by ADB.
Cygnus, established in 2011, currently operates a network of 20 multispecialty hospitals across 18 cities in India.
The funds will propel the company to establish up to six new hospitals in tier-2 and tier-3 cities, alongside fortifying and upgrading existing facilities. It is further poised to increase the bed capacity in hospitals from 1,622 to 2,560 by 2026.
The strategic expansion aligns with the Government of India’s national social health insurance program, the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). The additional number of hospitals is poised to support the AB-PMJAY program, reduce out-of-pocket costs, and enhance social protection for vulnerable households.
Suzanne Gaboury, ADB director general for private sector operations, highlighted the geographic inequity in healthcare distribution and commended Cygnus for addressing this challenge.
The bank’s support extends to increasing the gender impact of Cygnus’ services, including a focus on augmenting women’s outpatient visits and supervised childbirths.
The partnership also encompasses environmentally conscious initiatives, with plans to install rooftop solar power generation systems across Cygnus hospitals.
Anticipated to generate 1,213 megawatt-hours of clean, renewable energy, this move is expected to reduce approximately 1,231 tons of carbon dioxide emissions annually by 2028, concurrently lowering operational costs.
Probal Ghosal, Cygnus chairman and managing director, expressed the company’s commitment to providing sustainable and inclusive healthcare. He underlined the synergy between Cygnus' vision and the Government of India’s healthcare mission, particularly the AB-PMJAY implementation.
The collaboration with ADB is anticipated to strengthen Cygnus’ hospital network and reinforce its dedication to environmental, social, and governance practices in growth plans.
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