Pune: PCMC Extends Appu Ghar Operator’s Contract By 15 years; ₹8 Lakh Annual Rent For 7-Acre Civic Property

Pimpri-Chinchwad: The Pimpri-Chinchwad Municipal Corporation (PCMC) has extended the operating agreement of Appu Ghar amusement park by another 15 years, allowing the existing operator, Pushpak Amusements, to continue running the seven-acre facility at Durgadevi Tekdi. The decision has raised questions over the terms of the extension, particularly the rent being paid to the civic body for the prime property.

The operator currently pays around ₹8 lakh a year, or about ₹2,229 a day, under the revised arrangement. The extension comes with an approved plan to invest ₹18.60 crore in modernising Appu Ghar. However, questions have been raised over why a fresh tender was not floated for the long-term contract and whether the rent was assessed against current market rates.

21-year contract awarded in 2005

PCMC developed Appu Ghar in the late 1980s. The amusement park has been operating for around 35 years and attracts visitors from Pimpri-Chinchwad and Pune. On October 9, 2005, PCMC awarded the operating contract to Pushpak Amusements for 21 years. An agreement was signed between the civic body's Electricity Department and the firm.

The original annual rent was ₹2.75 lakh in 2005-06. The agreement provided for a 5% annual increase. As a result, the rent rose to around ₹7.29 lakh in 2025-26. This worked out to roughly ₹60,000 a month, or about ₹2,000 a day. The latest arrangement reportedly includes a 10% increase, taking the annual rent to around ₹8 lakh, equivalent to about ₹2,229 a day.

Fresh tender becomes key question

The operator had sought an extension after Appu Ghar remained closed for about two years during the Covid-19 pandemic. The closure was cited as the reason for seeking compensation through an extension of the agreement.

Instead of extending the contract only for the closure period, the arrangement has now been extended for a further 15 years. The decision to continue with the same operator without a fresh tender has become a key point of concern.

Questions have also been raised over how the new rent was fixed and whether PCMC carried out a fresh valuation of the seven-acre property before approving the extension. The issue is significant as the amusement park is located on valuable civic land and attracts hundreds of visitors.

Appu Ghar earns through multiple rides and packages

Appu Ghar has more than 20 rides and attractions. These include the Roller Coaster, Columbus, Bumper Cars, Go-Karting, Haunted House and My Fair Lady. Entry tickets generally range from around ₹50 to ₹100 for adults and ₹30 to ₹50 for children. Full packages covering entry and several rides are priced at around ₹400 to ₹599 for adults and ₹350 to ₹499 for children, excluding Go-Karting and food.

The daily footfall allows the operator to generate revenue through entry tickets, ride packages, food and other activities. Against this revenue-generating model, the civic body receives a fixed annual rent of around ₹8 lakh under the new arrangement.

₹18.60 crore modernisation planned

The extension has been linked to a major redevelopment of Appu Ghar. The operator is expected to invest ₹18.60 crore to modernise the seven-acre amusement park. The proposed additions include a Log Flume, Kids' Roller Coaster, a 360-degree immersive dome, an artificial Niagara-style waterfall and a VR zone.

A new food court, upgraded toilets and CCTV facilities are also part of the proposed improvements. The modernisation is expected to give the old amusement park a new look and add more attractions for visitors. However, the investment has also brought the financial terms of the land agreement under greater scrutiny.

Property tax issue also under scrutiny

A separate issue concerning the operator is its reported property tax dues to PCMC. Recent Marathi media reports have claimed that Pushpak Amusements has outstanding property tax dues of around ₹5 crore. The operator has reportedly sought relief citing government decisions, while PCMC’s Tax Collection Department has issued a notice seeking payment.

The matter is reportedly before the court. The tax dues, if confirmed from PCMC records, would add another important question to the debate over the long-term continuation of the contract.

Questions over political administrations

The original 21-year contract was awarded in 2005 when the NCP was in control of the civic administration. The latest extension has been approved under the current BJP-controlled civic administration. The chronology has led to criticism that successive administrations have allowed the same operator to continue managing the prime civic property.

However, whether the decision amounts to favouritism would require establishing the basis on which PCMC approved the extension, the applicable contractual provisions and the valuation used to determine the rent.

The key issue now is whether the 15-year extension and the revised rent represent a financially sound arrangement for PCMC, especially given the value and revenue potential of the property.