PMC to Utilize CSR Funds for Hospital Equipment Procurement, Raises Controversy

In a surprising turn of events, the Pune Municipal Corporation (PMC) has allocated a generous sum of ₹2 crore from its Corporate Social Responsibility (CSR) funds to a contractor operating an eye hospital at Bopodi on a public-private partnership (PPP) basis. The PMC intends to purchase equipment worth ₹2 crore for the hospital, even though no provision for such expenditure exists in the contract. Unsurprisingly, this proposal from the Health Department has sparked controversy, prompting NGOs to call for an investigation into the matter.

The Bopodi hospital, owned by the PMC, was handed over to the Vision Next Foundation for operation under a 30-year agreement. As per clause number three of the contract, the contractor is responsible for procuring 43 essential pieces of equipment, including two OCT machines and two green laser machines. Clause number 10 clearly states that the contractor bears the responsibility and financial burden of maintaining the machines and equipment. The contract explicitly states that the PMC will not provide any financial aid.

However, despite the clear terms and conditions outlined in the contract, the Health Department has submitted a proposal to the standing committee for the purchase of an OCT machine and a yellow laser machine, amounting to ₹2 crore. Since the funds are not available in the civic budget, the proposal suggests using funds from the PMC’s CSR corpus, according to Vivek Velankar, President of Sajag Nagrik Manch, who has filed a complaint with the municipal commissioner.

Velankar raises valid questions regarding the deviation from the contract terms. He questions why the proposal was submitted despite the explicit statement that the PMC is not expected to purchase equipment. He also questions why the Audit and Vigilance Department did not consider this discrepancy while sanctioning the proposal. Additionally, he questions the necessity for purchasing more machines when sufficient equipment is already available. He further raises concerns about the absence of this expenditure in the civic budget and questions the authority of the Health Department to spend CSR funds received by the PMC.

The controversy surrounding the allocation of CSR funds for equipment procurement raises questions about transparency and adherence to contractual obligations. It is essential that a thorough investigation be conducted to ensure accountability and uphold the integrity of the PMC’s CSR initiatives.

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