Shimla: The Central Government has sanctioned a hospital-cum-medical college for the state, Chief Minister Prem Kumar Dhumal said on Thursday.

"The central government has given the green light to a super-specialty medical college and hospital to be set up in Mandi district," Dhumal told reporters.

He said a 300-bedded hospital would be constructed by the Employees State Insurance Corporation (ESIC) with an outlay of Rs.5 billion.

"The state government has provided 25 acres of land in Mandi town to the ESIC for the hospital, which will be completed within two years," he said.

A team of the ESIC led by its director-general P.C. Chaturvedi surveyed the spot on Wednesday and agreed to construct the hospital.

"The graduation courses in the medical college will begin by 2010-11 and 50 percent of the total seats are reserved for residents of Himachal," Dhumal said.

The state government has already decided to increase the number of graduation and post-graduation seats at the Indira Gandhi Medical College (IGMC) in Shimla and Dr Rajendra Prasad Government Medical College at Tanda in Kangra district from this session.

The number of undergraduate seats at the IGMC have been increased to 100 from 65. Nine post-graduate seats have been added at the IGMC and 11 at Dr Rajendra Prasad Government Medical College.

However, the hill state is facing an acute shortage of doctors, especially specialists, particularly in tribal areas.

To tide over the problem, the government is already taking the services of private practitioners. IANS