BMC approves SevenHills Hospital lease to Capri Global under PPP model
Mumbai: Mumbai's civic body has approved a proposal to hand over the SevenHills Hospital campus in Marol to Capri Global Ventures Pvt Ltd under a public-private partnership (PPP) model, despite strong opposition from members who questioned the need for private participation and the approval process.
The proposal was approved by the BMC's Improvement Committee, paving the way for a fresh 30-year lease agreement for the hospital campus, extendable by another 30 years.
The proposal, which had earlier been discussed by the committee in May, was initially referred back to the civic administration after members raised several concerns. However, it was placed before the committee again on Tuesday and approved following a heated discussion.
Opposition members alleged that work at the hospital had already begun before the proposal received statutory approval. They questioned how any activity could have been initiated before the Improvement Committee formally cleared the project and sought a site inspection before a final decision was taken.
Several corporators also opposed handing over the hospital to a private operator, arguing that the Brihanmumbai Municipal Corporation (BMC) has sufficient financial resources to operate the facility on its own. They maintained that SevenHills Hospital had played an important role during the COVID-19 pandemic and should continue to function as a civic-run hospital rather than being managed by a private entity.
Civic officials, however, said reviving the long-defunct hospital through the PPP model would strengthen Mumbai's public healthcare infrastructure while preserving affordable treatment for civic patients. They stated that the proposal would allow the hospital to resume operations under the terms of the original agreement.
Under the approved resolution plan, the hospital will be redeveloped into a 1,500-bed not-for-profit tertiary care hospital. The proposal provides for a 30-year lease, extendable by another 30 years, for nearly 66,688 square metres of BMC-owned land in Andheri (East). Capri Global became the successful resolution applicant for SevenHills Healthcare Pvt Ltd through the insolvency process and will receive equity-based support from Reliance Foundation.
According to ET HealthWorld, the new promoter has agreed to honour the conditions of the original 2005 agreement and the 2013 memorandum of understanding, including reserving 20% of operational beds (300 beds) and 20% of OPD services for BMC patients. Eligible patients will continue to receive treatment, medicines and diagnostic services at BMC rates under the PPP arrangement.
