New Delhi, Sep 14 - The government will allow the private sector to set up medical colleges in backward states, hilly areas and the northeast region, Health Minister Ghulam Nabi Azad said Monday.

'We will allow the private sector to set up medical colleges in backward states, hilly areas and the northeastern region,' Azad said here at a healthcare meet organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), an industry lobby.

The government will allow these colleges to use the facilities of the district hospitals, he said.

'We will give access to district hospitals in these areas to private sector where they have the medical colleges,' he said, adding this will reduce the private sector's expenditure and, at the same time, help create medical 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,' Azad added.

According to a Planning Commission report, India faces a shortage of about 600,000 doctors, one million nurses, 200,000 dental surgeons and a large number of paramedical staff.