Civic chief bats for bold monetisation of amenity spaces through PPP | Hindustan Times

Civic chief bats for bold monetisation of amenity spaces through PPP

ByNadeem Inamdar
Published on: Sep 12, 2025 07:28 AM IST

Pune municipal commissioner Naval Kishore Ram has indicated his intent to take “bold decisions” to unlock the revenue-generating potential of Pune Municipal Corporation (PMC)-owned properties particularly amenity spaces that remain underutilised or mismanaged.

Pune: Pune municipal commissioner Naval Kishore Ram has indicated his intent to take “bold decisions” to unlock the revenue-generating potential of Pune Municipal Corporation (PMC)-owned properties particularly amenity spaces that remain underutilised or mismanaged.

Pune, India - December 29, 2018: Demonstration of new VVPAT machine to the citizens and representative of political parties by Pune District Collector Naval Kishore Ram at the collector office along with Monica Singh, district deputy electoral officer and others. in Pune, India, on Saturday, December 29, 2018.-HT photo
Pune, India - December 29, 2018: Demonstration of new VVPAT machine to the citizens and representative of political parties by Pune District Collector Naval Kishore Ram at the collector office along with Monica Singh, district deputy electoral officer and others. in Pune, India, on Saturday, December 29, 2018.-HT photo

Citing PMC’s growing financial burden, Ram said, “We maintain nearly a thousand civic properties and spend close to 4,000 crore annually, but barely recover 2,000 crore. That’s a broken revenue model. Take the auditorium in Yerawada, one of the finest in the state where we charge just 1,000 for public use. To maintain it, we pay 2,000 a day. Similar stories exist across our entire inventory.” He lamented that public properties in Pune are being grossly undervalued while costs escalate and revenue stagnates. Ram was speaking at a real estate developers conclave on Wednesday.

Referring specifically to amenity plots, Ram said many such spaces across Pune are “turning into garbage dumps” due to administrative inertia and fear of public criticism. “We’re sitting on thousands of amenity spaces meant for hospitals, schools, parking zones, or sports complexes but we don’t build anything because of hesitation. There’s always this fear ‘agar diya toh koi bolega ghotala ho gaya (If we give it to someone people will say a fraud has happened)’,” he said. “But we can’t let fear dictate policy. If a plot is reserved for a sports complex and PMC lacks the funds to build it, then let private developers take it up under PPP. Build it, share a portion of the revenue, and maintain the public purpose.”

Ram said that the reluctance to engage private players through structured PPPs is hurting the city’s growth. “People are afraid of the word ‘PPP’ as if it’s synonymous with something different. But unless we involve credible private investment, how will Pune move forward?” he asked. He assured that all upcoming projects would follow transparent processes and sought public support in case of criticism: “When the noise begins, I’ll need you to back me.”

In recent years, PMC has increasingly adopted the PPP model for roads and infrastructure projects partnering with private entities to finance, build, and operate key public assets. According to civil society forums, while these models have helped bridge financial gaps and accelerate delivery, they also require robust regulation to avoid misuse and ensure public benefit.

In August 2021, PMC approved a policy to lease over 270 amenity spaces to private entities under a PPP model for up to 90 years, allowing limited commercial use. The move drew criticism from several citizen forums and NGOs, who argued it undermined the public nature of these spaces.

In response to a PIL, the Bombay High Court in February 2022 directed PMC to state in all future layout approvals that they are subject to the PIL’s outcome. Critics argue the policy threatens civic infrastructure, especially in newly merged areas.

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