BMC Seeks Post-Facto Approval For KPMG Appointment To Drive PPP Hospital Projects In Mumbai

Mumbai, October 12, 2026: KPMG Advisory Services Pvt. Ltd. will help the Brihanmumbai Municipal Corporation (BMC) develop and manage public-private partnership (PPP) healthcare projects involving major civic hospitals and other medical facilities.

However, the civic body has now sought post-facto approval from its Standing Committee to relax the requirement of publishing a tender notice in newspapers for the consultancy appointment, after the engagement had already commenced.

A proposal in this regard will be tabled at the coming Standing Committee meeting.

According to the municipal commissioner's letter dated October 5, 2026, KPMG has been appointed to develop a comprehensive policy framework, prepare tender documents, manage the bidding process and streamline civic healthcare services in line with the Centre's Viksit Bharat 2047 vision.

Key Hospitals and Healthcare Projects

Key projects under consideration include the 490-bed Bhagwati Hospital, the 470-bed Shrimati M.T. Agarwal Hospital in Mulund, the 150-bed Oshiwara Maternity and Child Care Hospital in Jogeshwari, and nine developed healthcare facilities transferred to the BMC.

The consultancy will also support PPP projects involving diagnostic centres, CT and MRI services, dialysis units, catheterisation laboratories (Cath Labs), blood banks and proposed medical and nursing colleges.

The administration has cited the Maharashtra government's PPP Policy 2026, which calls for a consultant to implement the proposed projects. It has also pointed out that KPMG is empanelled with the state government until September 11, 2028, for services including policy formulation, preparation of Detailed Project Reports (DPRs), financial modelling and bid-process management.

Consultancy Fee and Tender Requirements

The proposed consultancy fee is Rs 3.45 lakh per month for the stated period. The administration has argued that, as the remuneration follows state government-prescribed policies, not inviting competitive bids would not cause financial loss to the civic body.

However, the tender notice was not published in newspapers despite the requirement under Section 72(1) of the Mumbai Municipal Corporation Act, 1888, for tenders involving expenditure exceeding Rs 3 lakh.

The BMC has therefore sought the Standing Committee's ex-post-facto approval, or permission granted after an action has already been taken, under Section 72(3) to relax the newspaper-publication requirement.

Also Watch:

Concerns Over Privatisation of Civic Healthcare

Public representatives and healthcare activists have opposed the privatisation of civic healthcare services through PPP or civic collaboration models, fearing that private-sector involvement could make treatment unaffordable for economically weaker patients and gradually shift control of public healthcare facilities away from the civic administration.

The proposed arrangement is likely to draw scrutiny over safeguards to ensure affordable treatment for patients dependent on municipal hospitals.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/