BMC Moves Ahead With ₹101 Crore Hospital Privatisation Plan Despite Opposition, BJP MLA Mihir Kotecha Alleges ₹45 Crore Scam

Mumbai: Despite opposition, the Brihanmumbai Municipal Corporation (BMC) is moving ahead with plans to privatise certain non-core healthcare services. The civic body will table a Rs 101 crore proposal at the Standing Committee meeting on Wednesday to outsource cleaning and waste management across major municipal hospitals.

Outsourcing covers KEM, Sion, Nair, Cooper hospitals

According to the proposal, housekeeping and garbage disposal services will be outsourced at key facilities, including KEM, Sion, Nair, Cooper, Nair Dental, Trauma Centre, Bhagwati and M. T. Agarwal hospitals. The contract is proposed for a period of three years.

Officials said the BMC had initially estimated the project cost at Rs 120 crore but revised it to Rs 101 crore after recalculations. Hospital-wise allocations include Rs 26 crore for KEM Hospital, Rs 27 crore for Cooper Hospital, Rs 13 crore for Bhagwati Hospital, Rs 12 crore for Sion Hospital and Rs 5.61 crore for Nair Hospital.

Per square foot contract with Rs 10,000 daily penalty

The contract will be awarded on a per square foot, per month basis. For instance, KEM Hospital’s cleaning cost has been pegged at Rs 6.78 per sq ft per month. The selected contractor must begin work within 30 days of receiving the work order, failing which a penalty of Rs 10,000 per day will be imposed.

The move comes amid mounting complaints of poor sanitation and uncollected garbage in civic hospitals since December 2025, when the previous waste management contract expired. Officials said the proposal aims to streamline waste disposal and improve hygiene standards in public healthcare facilities.

BJP MLA Mihir Kotecha demands tenders be scrapped

Meanwhile, ahead of the Standing Committee meeting, Mulund BJP MLA Mihir Kotecha has demanded that the tenders for housekeeping contracts in major civic hospitals be scrapped, alleging a Rs 45-crore scam. He has called for a thorough probe into the role of senior officials in the BMC’s Health Department, claiming manipulation in the bidding process.

In a letter to BMC chief Ashwini Bhide, Kotecha alleged that the tender was quoted at over 20% below the estimated cost. He pointed out that the lowest bidder quoted “zero” under key components such as gratuity, service charges and safety equipment for labourers and supervisors, despite the bid form mandating minimum entries.

Lowest bidder quoted zero for safety equipment

Kotecha further claimed that the company quoted zero for safety materials, potentially compromising worker health and violating labour laws. “It seems the firm has a magic wand. They will maintain 41 lakh sq ft of hospital area, including 800 bathrooms, without using any cleaning materials or incurring any cost,” he said.

Health activist Chetan Kothari said hospitals must maintain the highest standards of hygiene, as patients come for treatment, not to contract additional infections. “Hospital-acquired infections are on the rise. Mere spending is not enough—results must be visible. Many places where housekeeping was outsourced are still unclean and filthy,” he said.

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