PUBLIC GARDEN MAINTENANCE THROUGH PPP- A CASE OF
Dhwani Shah Bagchi
Email id: firstname.lastname@example.org,
Contact number: +91- 9913399195
Ahmedabad is the largest city in the state of Gujarat and the seventh largest city in India. Ahmedebad
Municipal Corporation (AMC) is responsible for the civic infrastructure and administration of the city
of Ahmedabad. The area falling outside the periphery of AMC is maintained by Ahmedabad Urban
Development Authority (AUDA).
Ahmedabad has a total of 214 Public Gardens. The Government body generally contracts out the
maintenance work at a pay per Sq.m rate to the contractor for maintaining the gardens. Maintaining
these gardens cost the government a huge sum of money, a lot of effort to deal with different contracts
and addressing people’s complains. AUDA came up with an innovative idea which could help the
government cut down its cost on Garden maintenance- The Public Private Partnership (PPP) model.
AUDA offered AMUL to maintain their gardens and in return AUDA would allow AMUL to put up a retail
shop in the AUDA garden. The revenue from the shop would contribute to pay for garden maintenance.
AMUL (Anand Milk Federation Union Limited) is an Indian dairy cooperative which spurred India’s White
Revolution and made the country the world’s largest producer of milk and milk products.
Since, the PPP model was a concept and no one was really sure if this model would be successful, a test
run was made by opening an AMUL store in one of the AUDA gardens to check if the concept was viable
or not. It so turned out that it was possible for AMUL to maintain the garden, if given a retail outlet. The
model worked. AMUL took up about 20 gardens in the first year of the contract. It has gradually
increased, and today AMUL maintains to a total 126 public gardens with 78 parlors for AMC and AUDA.
HOW DID THE MODEL FUNCTION?
As per the contract AMC would allow AMUL to construct its parlor inside the garden premises. The size
of the parlor and the location within the garden would be decided collaboratively by AMC and AMUL.
AMUL would have to bear the completed cost of garden maintenance starting from- civil work
maintenance, plants & fertilizer, maintaining children play equipments, electricity and electrical
maintenance to Cost of manpower (gardener, supervisor, watchman and sweeper).
AMUL has an expertise in making Milk and Milk products. But, to maintain so many gardens would
require an organization which has proficiency in this sector. AMUL then approached Gujarat
Environmental Service Society (GESS) a trust which was established by a group organizations like AMUL,
NDDB, GCMMF, Charotar Arogya Mandal, Elecon Engg. Co. Ltd, IRMA and member unions of GCMMF. It
was established to promote and improve the environment of the society in general and to improve the
surrounding environment of the organization premises in particular. AMUL entered into a contract for
garden maintenance with GESS where GESS is paid as per the actual cost incurred for the maintenance
of the gardens and a fixed percentage of the expenditure as its profit. Having a single agency for the
maintenance has helped AMUL decrease their effort and the continuity has helped in the improvement
of the gardens.
ADVANTAGES TO THE STAKEHOLDERS-
AMC/AUDA: They save the major cost of Garden Maintenance which involve- civil work maintenance,
plants & fertilizer, maintaining children play equipments, electricity and electrical maintenance, Cost of
manpower (gardener, supervisor, watchman and sweeper).
AMUL: They get a prime location in Ahmedabad for advertising its products, it strengthens its brand
image and they get the platform to stay in direct contact with the customers.
People of Ahmedabad: They get good maintained gardens, healthy environment plus milk and milk
products at the nearest location.
GESS: A good platform for fulfillment of the trust’s objective, Employment to hundreds of workers. (Due
to the stability of the contract; the workers get Provident Fund, Workmen Compensation Policy, Group
Insurance, Employment deposit link insurance which generally a garden worker would never get)
RISKS TO THE STAKEHOLDERS-
AMC/AUDA: The government can have an adverse effect and outrage from the people if the gardens
are not maintained properly.
AMUL: If the expenditure for the garden is more than the income from the parlor (which happens in
some cases, but largely it is cross subsidized with a parlor earning more profit). The company may face
negative publicity if the gardens are not maintained properly.
It is the symbiotic relationship which has helped AMC/AUDA, AMUL and the people of Ahmedabad. Each
party has taken the risk which they were best suited to handle. AMUL took the monetary risk and sub-let
the maintenance work to GESS which they had expertise in handling.
List of Abbreviations-
AUDA: Ahmedabad Urban Development Authority,
AMC: Ahmedabad Municipal Corporation,
AMUL: Anand Milk Federation Union Limited,
NDDB: National Dairy Development Board,
GCMMF: Gujarat Cooperative Milk Marketing Federation Ltd,
IRMA: Institute of Rural Management, Anand,
GESS: Gujarat Environmental Service Society