Ranchi, May 1: The state health department has formed a committee to scrutinise proposals for setting up two private medical colleges in Deoghar and Dumka.

The verification committee, constituted by the state health department last week, will assess whether the two proposed institutes qualify for the government's incentive policy that envisages disbursal of up to Rs 30 crore to investors wanting to set up medical colleges in the state.

Paritran Trust is planning to set up Paritran Medical College and Hospital in Deoghar while Sido Kanhu Public Charitable Trust is willing to start Sido Kanhu Medical College and Hospital at Raneshwar in Dumka.

Sudhir Kumar Ranjan, joint secretary of the health department, said the release of funds would depend on the spadework done for the proposed colleges by the investors.

"A meeting was held with representatives of the two proposed colleges last week, and we told them that our team would inspect the sites before the incentive amounts were released," he said.

The verification committee comprises Dr Manju, director (medical education), and the civil surgeon and drug inspector of the district concerned. A representative from the district will also be part of the team.

"Though representatives of the trusts have briefed us on the spadework done by them for the proposed colleges, our own people must go for verification on the ground before releasing amounts they have demanded from the government for their projects," Ranjan added.

The committee has been asked to submit its findings to the health department secretary within this month.

A source in Deoghar collectorate said that Paritran Trust had been trying to get approval from Medical Council of India (MCI) to run a medical college since 2009. The trust had sought Rs 10 crore financial aid from the state government and once again applied for the MCI nod.

"Once the facilities are ready and the MCI gives its nod, the medical college can start functioning," an official said.

The proposed Sido Kanhu Medical College and Hospital has received no-objection certificate from the state but is yet to get the MCI approval.

"The state government had given its no-objection certificate to the trust way back in 2007. The proposed medical college is likely to come up on over 10 lakh sqft. It would have a six-storey and a nine-storey building. It has also applied for state government's incentive of Rs 30 crore," said a health department official.