Pune Civic Chief: PPP Model for Property Utilisation

Pune, Sep 11 (PTI) Pune civic chief Naval Kishore Ram on Thursday called for greater private participation in developing and maintaining civic amenities while asserting that bold decisions must be taken to utilise its properties and spaces effectively.
Speaking at the National Real Estate Development Council (NAREDCO) Pune Growth Conclave here, he said Pune Municipal Corporation owns more than 1,000 properties, including world-class facilities such as auditoriums, but its revenue generation model is unsustainable.
Ram said the civic body charges a minimal rent of Rs 1000 from those wanting to organise programmes at these auditoriums, while spending Rs 2000 per day to maintain them.
"PMC has a list of 1,000 such properties. To maintain them, we spend Rs 4,000, but the income we receive is only Rs 2,000. Nobody might have seen such a revenue model. I doubt there is any other city apart from Pune where properties are managed in this manner," Ram pointed out.
Speaking about people's apprehensions regarding the Public Private Partnership (PPP) model, Ram said PMC's revenue has remained unchanged for years because of this hesitation.
"If we do not focus on revenue generation or take bold steps, how will we move forward," he asked.
"PMC has thousands of amenity spaces where hospitals, schools, sports complexes, and parking facilities can be built. Unfortunately, these spaces are turning into garbage dumping spots because PMC has refrained from taking steps fearing accusations of corruption if such spaces are developed under the PPP model," he said.
"But I am going to take bold decisions. We will invite private players to develop them into sports complexes, hospitals, schools, or parking facilities. There is need for a robust PPP model to maximise the potential of civic assets. PMC may not always have funds, but private stakeholders do," Ram said.
If an amenity space is reserved for a sports complex, either PMC should build it, or the private sector should develop it and share the benefits, he said.
"These are very clear, visible, and diagnosed administrative problems that have remained unresolved for decades, and that is why we need your support," said Ram while addressing the real estate body.
Ram also said PMC has set a target of building at least 75 kilometres of roads of superb quality every year.
"People often give the example of JM Road, which was built 30-40 years ago. Even today, it has no cracks or potholes, simply because it was constructed with superb quality," Ram said.
"We are following a four-level approach. Recently, we have taken up around 75 kilometres of roadwork across the city. Just two days ago, I allocated about Rs 200 crore solely for pothole repair, road reinstatement, and restoration of footpaths and dividers," he said.