PMC Seeks Public-Private Partnerships to Revitalize Pune’s Civic Assets
Pune Municipal Commissioner Naval Kishore Ram has called for public-private partnerships to enhance the city's revenue and better manage civic properties.
PunePmcPublicprivate PartnershipsCivic PropertiesRevenue GenerationReal Estate PuneSep 12, 2025
Highlighting the growing gap between expenditure and income, Ram pointed out that the civic body maintains nearly a thousand properties at an annual cost of around Rs 4,000 crore, while generating barely Rs 2,000 crore in return. “This is an unsustainable model,” he said. For instance, the Yerawada auditorium, one of the finest in Maharashtra, is rented out for just Rs 1,000 a day, despite costing Rs 2,000 daily to maintain. This mismatch is prevalent across many of the city's properties.
The commissioner criticized the undervaluation of civic properties, noting that the fear of public backlash often prevents officials from taking constructive actions. Referring to amenity plots, he remarked: “Across Pune, thousands of amenity spaces are reserved for hospitals, schools, sports complexes, or parking, but many end up as dumping grounds. The hesitation comes from the fear that if we allocate them, people will say a scam has happened. But we cannot let policy be dictated by fear.”
Ram argued that public-private partnerships (PPP) could offer a solution. “If a plot is earmarked for a sports complex and PMC lacks the resources, private developers should be allowed to build it, run it, and share revenue with PMC while maintaining its public purpose,” he said. He stressed the need to change perceptions, adding: “People react as if PPP is a bad word. Unless we allow credible private participation, how will Pune progress?”
He assured that any projects under PPP would be handled transparently and appealed to stakeholders for support in the face of expected criticism. “When objections are raised, I’ll need the development community and citizens to stand with us,” he said.
Over the past few years, PMC has adopted PPP models in sectors such as road construction and other infrastructure, helping to bridge funding shortfalls and speed up project delivery. However, civic groups caution that PPP projects require strong regulation to ensure public benefit and prevent misuse.
In August 2021, PMC approved a policy to lease over 270 amenity spaces to private players for up to 90 years, with provisions for limited commercial use. This move sparked protests from NGOs and citizen groups, who argued that such long-term leases compromise the public nature of civic spaces. Following a public interest litigation (PIL), the Bombay High Court in February 2022 directed PMC to specify in all new layout approvals that the final outcome would depend on the PIL’s resolution. Activists continue to warn that the policy could weaken civic infrastructure, particularly in newly merged city areas.
Frequently Asked Questions
What is the current financial situation of the Pune Municipal Corporation (PMC)?
The PMC maintains nearly a thousand properties at an annual cost of around Rs 4,000 crore, while generating only Rs 2,000 crore in return, leading to an unsustainable financial model.
What is the Yerawada auditorium example used by Commissioner Ram to highlight the issue?
The Yerawada auditorium, one of the finest in Maharashtra, is rented out for just Rs 1,000 a day, despite costing Rs 2,000 daily to maintain, illustrating the mismatch in revenue and maintenance costs.
What is the proposed solution to better manage civic properties in Pune?
Public-private partnerships (PPP) are proposed, where private developers would be allowed to build and run facilities like sports complexes, sharing revenue with the PMC while maintaining their public purpose.
What concerns do civic groups have regarding PPP projects?
Civic groups caution that PPP projects require strong regulation to ensure public benefit and prevent misuse, as long-term leases could compromise the public nature of civic spaces.
What action did the Bombay High Court take regarding the leasing of amenity spaces?
Following a public interest litigation (PIL), the Bombay High Court directed the PMC to specify in all new layout approvals that the final outcome would depend on the resolution of the PIL.
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