New Delhi, Sep 14 - Health Minister Ghulam Nabi Azad Monday invited the private sector to set up medical colleges along with government district hospitals in backward, hilly and northeastern states of India - a reformative step that private players termed as 'music to ears'.

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

'While the private sector can have access to our district hospital for the teaching purposes, the country will get specialists like doctors and paramedics,' he said.

'Private sector should come up with medical colleges. With our district hospitals already in place, private sector will not have to invest much,' said Azad, 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,' he 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.

While 70 percent of healthcare infrastructure is with the public sector, at least 80 percent of health delivery is done in India via the private sector.