The letter should clearly indicate the instructions I believe. It should say something like this: Go to the nearest panel physician, with a print out of this letter. Follow doctor's instructions.
Then it will have a section for doctors, instructing them with something like this: Take this person's test for the following (e.g., Chest X-Ray, blood test etc.), prepare a report, and submit within X number of days indicating the file number. (We got deadline of 7 days).
Your job as applicant is to go to the panel physician with the letter. Since this is India, they will definitely act innocent and do all tests and grab as much money as possible. Best is not to complain, but explain again and again what exactly needs to be submitted. And also follow up to make sure they submit the results and the report within the deadline time. Get a receipt for your own proof, but you don't have to submit anything. Remember to be polite with doctors even if we they are grabbing money, as they are writing your report too unfortunately.