Historic Ranchi Mental Health Institute Set for Major Upgrade in Union Budget 2026
In a significant move to strengthen mental healthcare infrastructure across India, the Union Budget 2026-27 has announced plans to upgrade the Central Institute for Psychiatry (CIP) in Ranchi into a regional apex institution. This development comes alongside the establishment of Nimhans-2 in North India, addressing critical gaps in national mental health services.
Century-Old Institution Gets New Recognition
The Central Institute for Psychiatry, located in Kanke, Ranchi, holds a distinguished place in India's mental healthcare history. Originally established by the British as the Ranchi European Lunatic Asylum on May 17, 1918, the institute has been serving patients for over 108 years. Spread across a sprawling 220-acre campus, CIP has long been recognized as a premier mental health facility in eastern India.
Union Finance Minister Nirmala Sitaraman, during her budget speech on Sunday, emphasized the need for enhanced mental healthcare infrastructure. "There are no national institutes for mental healthcare in north India. We will, therefore, set up a Nimhans-2 and also upgrade national mental health institutes in Ranchi and Tezpur as 'regional apex institutions,'" she announced.
Transforming Mental Healthcare in Eastern India
CIP Director Vijai Kumar Chaudhary expressed enthusiasm about the budget announcement, stating that this upgrade would provide a major boost to mental healthcare services in Jharkhand and the eastern regions of the country. "We have been working in this sector for 108 years now," he told TOI. "We plan to upgrade the centre into a 500-bed hospital on the institute campus, covering neurological and psychiatric facilities, to cater to all age groups."
The institute plans to submit a detailed proposal to the Union government for the comprehensive upgrade, which would significantly expand its capacity and service range.
Breaking Stigma and Expanding Services
Dr. Minu Budhia, psychotherapist and founder of Carring Minds International, welcomed the budget's focus on mental health. "Mental health issues have long been treated like a taboo and those suffering have been met with societal stigma," she observed. "For years, most families have brushed these issues under the carpet. Pressure is put on patients and their family members to keep their conditions and treatment shrouded in secrecy."
Dr. Budhia, who has been advocating against negative perceptions surrounding mental health for decades, expressed hope that the budget initiatives would help normalize mental healthcare. "It fills me with hope to see the Union budget addresses mental healthcare by setting up Nimhans-2 in North India and upgrading existing national mental health institutes in Ranchi and Tezpur to regional apex institutions," she added.
Broader Healthcare Implications
The budget also announced the establishment of Emergency and Trauma Care Centres in district hospitals, which medical professionals hope will benefit states like Jharkhand. A health department official noted that many district hospitals in remote areas still lack adequate emergency and trauma care units, and central funds could help address these deficiencies.
This dual approach—enhancing both specialized mental healthcare and general emergency services—represents a comprehensive strategy to improve healthcare delivery across different tiers of the system.
Historical Context and Future Vision
The Central Institute for Psychiatry's transformation from its colonial-era origins to a modern regional apex institution reflects India's evolving approach to mental healthcare. While the country's first Nimhans remains based in Bengaluru, the creation of Nimhans-2 and the upgrade of regional institutes like CIP signal a more distributed and accessible mental healthcare network.
The budget announcement comes at a time when mental health awareness is growing, yet infrastructure remains unevenly distributed across regions. By designating CIP as a regional apex institution, the government aims to create a hub of excellence that can serve as a referral center, training facility, and research institution for eastern India.
As India continues to address the complex challenges of mental healthcare delivery, initiatives like these represent important steps toward creating a more inclusive and effective healthcare system that recognizes mental wellbeing as integral to overall health.
