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McKinsey is back despite opposition from corporators

The corporators of Pune Municipal Corporation have been divided over hiring McKinsey and Co to prepare a blueprint for the city’s development.

Written by Ajay Khape | Pune |
October 15, 2009 11:51:43 pm

The corporators of Pune Municipal Corporation (PMC) have been divided over hiring McKinsey and Co to prepare a blueprint for the city’s development. Now,the civic body’s tryst with the global consultancy firm seems inevitable as the Union Government that has roped in Mckinsey for mid-term appraisal of how municipal corporations,including the PMC,have fared while executing projects under the JNNURM.

A meeting of top bureaucrats,including municipal commissioners,was held at Mantralaya on Thursday to mull over this decision and chart out the future course of action. “The appointment of McKinsey has been done by the Union Government. Therefore,a preliminary discussion of all the benefiting municipal corporations in the state was conducted to ensure that they make most out of the assessment,” said Manu Kumar Srivastava,Principal Secretary,Urban Development Department.

He said the focus was to see whether there is a need of any mid-term correction. “The process is to simplify the procedure for implementation of the project and seek the possibility of expanding the existing projects,” Srivastava said.

The PMC sought this as an opportunity to highlight the difficulties it continues to face in executing projects under JNNURM. “There are several problems in the smooth execution of projects that were not considered when the proposals were sent to the Union Government for approval,” said Vinay Deshpande,officer on special duty for PMC.

Similarly,the escalation in project cost due to the addition of a few necessary features in the plan had also not been considered while finalising the proposal,Deshpande said. “It is likely that the Union government,based on the report of McKinsey,will make more funds available for the development of Pune.”

The municipal corporation,if it shows a good performance in the mid-term appraisal,can possibly get more projects approved along with additional funds,he said.

Earlier,the Mumbai Transformation Support Unit (MTSU) of the state government got McKinsey on board to undertake a study of the urban planning of Pune so as to make appropriate suggestion for the makeover of the city.

The MTSU is created through a tripartite agreement between the World Bank and Cities Alliance,the state government and the All-India Institute of Local Self Government.

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