'We will allow the private sector to set up medical colleges in backward states, hilly areas and the northeastern region,' Azad said at a health care meet organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
He added that these colleges would posses the district hospital facilities and thus create specialists like doctors and paramedics.
'We face a huge problem in the area of specialists like doctors and paramedics and this initiative will help the country bridge the gap,' said Azad.
Private sectors seemed happy with the decision.
'It is like music to the ears of private sector," said Shivinder Mohan Singh, Managing Director of Fortis Healthcare.