October 18, 2025: The Brihanmumbai Municipal Corporation (BMC) has been steadily expanding its public-private partnership (PPP) model, outsourcing key municipal services and infrastructure projects to private players. The trend began with the late Ratan Tata’s gesture of offering to maintain the median of the 10.58-km Coastal Road, which inspired the BMC to invite private participation in developing newly reclaimed land along the corridor. Reliance Industries Limited (RIL) emerged as the winning bidder for the Rs 400-crore project.
Over the last two years, the BMC has outsourced a wide range of services, including smart parking apps, parking lot operations, sports complexes, textile museums on old mill lands, swimming pool and cycling track maintenance, and even essential services in nine peripheral hospitals. The corporation cites fiscal prudence as a key driver: outsourcing allows it to save public funds while generating revenue from private partners’ profits, advertising rights, or CSR contributions.
Municipal Commissioner Bhushan Gagrani noted, “When the final bills start coming in over the next three years, we’ll need to explore ways to strengthen our fiscal resources. Instead of taking on too many projects, we’ll focus on a few important ones…once engineers realise their budgets won’t be approved easily, their cost estimates also come down.”
The BMC has also started sharing revenues from outsourced projects, such as swimming pools and parking lots, and even clearing abandoned vehicles, which has generated Rs 1.5–1.8 crore. However, critics warn that privatisation, particularly of hospitals, could compromise accessibility for low-income residents. Abhay Shukla of Jan Swasthya Abhiyan said, “This approach undermines the very idea of public healthcare, where services should be accessible and affordable to all.”
Supporters argue that PPPs are beneficial if efficiency and accessibility are ensured. Milind Mhaske, CEO of the Praja Foundation, said, “The BMC must ensure safeguards in the system and continue to retain ownership over public amenities. They should ensure transparency in the process of choosing the private player, so that citizens get the best offer.”
With initial “trial runs” like swimming pool maintenance underway, the BMC’s privatisation drive is expected to accelerate, raising both opportunities and concerns about accountability, equity, and control over Mumbai’s public assets.
Source: Hindustan Times
