₹104 Crore for Electrical Works, Now ₹10.52 Crore Furniture: AMC’s Hospital Spending Under Scrutiny

The Ahmedabad Municipal Corporation (AMC) is facing fresh questions over expenditure on its new LG Hospital in Maninagar and Shardaben Hospital in Saraspur, with a proposal to spend ₹10.52 crore on office furniture for the two facilities. The proposed purchase of tables, chairs, sofas and other furniture comes after ₹104 crore was approved for lighting and electrical works at the hospitals.

The spending has drawn attention to the overall cost of the two hospital projects, which are being constructed at a combined cost of more than ₹350 crore. The projects have faced criticism over their initial contract rates, additional expenditure and the cost of various works.

₹10.52 crore furniture proposal placed before hospital committee

Under the proposal, the AMC plans to spend ₹6.41 crore on office furniture for Shardaben Hospital and ₹4.11 crore for LG Hospital.

The furniture is intended for office spaces and doctors’ cabins, including tables, chairs and sofas. The proposal has been placed before the hospital committee for consideration.

The scale of the proposed expenditure has raised questions about whether such a large amount is justified for furniture purchases alone. Critics argue that the sum could be enough to construct a small or medium-sized office building.

₹104 crore electrical works had already drawn scrutiny

The furniture proposal follows the approval of ₹104 crore for lighting and electrical fitting works at the two hospitals. The earlier allocation had attracted attention because of the substantial amount involved and the manner in which it was approved.

The two hospitals are part of major AMC infrastructure projects that have been under construction for around four years. Their combined construction cost exceeds ₹350 crore.

The contracts for the hospitals were initially awarded at rates reportedly 22% to 25% above standard estimates. Additional expenditure was later approved for design changes at LG Hospital, further fuelling questions over the rising project costs.

AMC budget rises to ₹18,500 crore

The expenditure debate comes as the Ahmedabad Municipal Corporation's budget has increased substantially. According to the supplied report, the civic body's budget stood at ₹11,500 crore in the previous financial year and rose to ₹18,500 crore this year.

The report criticises the administration over spending priorities, arguing that public funds should translate into better civic infrastructure, including roads and other essential services.

The latest furniture proposal has added another layer to the scrutiny surrounding the two hospital projects, with questions likely to focus on the justification for the expenditure and the process through which it will be approved.

Questions over spending on public healthcare infrastructure

With ₹104 crore already allocated for electrical and lighting works and another ₹10.52 crore proposed for furniture, attention is turning to the overall cost management of the two hospitals.

The proposal does not, by itself, establish whether the planned purchases are overpriced. However, the size of the allocation has prompted questions about cost estimates, procurement decisions and the need for transparency in public spending.

The AMC hospital committee's consideration of the furniture proposal will be a key step in determining whether the expenditure proceeds as planned.