A centrally sponsored scheme of “Strengthening/Up-grading of State Government Medical Colleges (SUSGMC)” through financial assistance for starting Post Graduate (PG) courses by creating PG seats for new PG courses and increasing PG seats of existing courses was launched by the Ministry of Health and Family Welfare (MoHFW), Government of India (GoI) at the end of the 11th Plan and the scheme had a validity period of entire 12th Plan period (2012-13 to 2016-17), further extended up to March 2019. The scheme funds were directly released to the GMCs by the MoHFW (GoI) on the basis of recommendations of the Technical Evaluation Committee (TEC) under Directorate of Health Services and after the approval of the Empowered Committee (EC). Based on the TEC visit to the GMCs between 13.09.2010 and 16.09.2010 and its recommendations MoHFW selected 11 GMCs (11.10.2011 and 26.12.2011), in Maharashtra for implementation of the scheme and approved a total fund of INR 345.79 crore with central share (75 per cent) of INR 259.34 crore and State share (25 per cent) of INR 86.45 crore. This amount was approved for starting PG courses by creating 116 PG seats in two GMCs and increasing 409 PG seats for 112 existing courses and creating 167 PG seats for 60 new PG courses in remaining nine GMCs by creating new capital assets, upgrading medical equipment and appointment of faculty. This performance audit was conducted to assess whether appropriate planning was done for effective and efficient implementation of the scheme, adequate funds were provided, monitoring was effective and envisaged outcomes of the scheme were achieved. Audit examined records in all 11 Government Medical Colleges and in the Directorate of Medical Education and Research, Government of Maharashtra for the period from 2011-12 to 2018-19.