BMC’s proton therapy project fails to attract bidders despite three tender extensions

Floated in October 2024 by KEM Hospital, the project aimed to set up a cutting-edge oncology facility at BMC’s Leprosy Hospital premises in Wadala through a public-private partnership (PPP) model. However, civic officials confirmed that private players have shown no interest so far

MUMBAI: The Brihanmumbai Municipal Corporation’s (BMC) ambitious plan to establish a proton therapy centre for advanced cancer treatment has hit a major hurdle, with not a single bidder coming forward despite three extensions of the tender deadline.

BMC’s proton therapy project fails to attract bidders despite three tender extensions

Floated in October 2024 by KEM Hospital, the project aimed to set up a cutting-edge oncology facility at BMC’s Leprosy Hospital premises in Wadala through a public-private partnership (PPP) model. However, civic officials confirmed that private players have shown no interest so far.

Initially, the tender deadline was set for November 26, 2024. In a bid to encourage participation, the civic body extended it thrice, with the last extension closing in the first week of April 2025. Despite this, the process failed to attract any bidders.

Officials attributed the lack of interest primarily to the steep capital investment required. Setting up a proton therapy facility is estimated to cost between ₹700 crore and ₹800 crore. Under the proposed PPP model, BMC would provide the land and administrative support, while the private partner would bear the entire cost of construction, equipment procurement, staffing, operations, and maintenance. Treatment charges were proposed to be capped at rates fixed under the Central Government Health Scheme (CGHS) or the All India Institute of Medical Sciences (AIIMS), a factor experts say severely limits profit margins.

“Proton therapy requires extremely high initial investment, and the patient volume in India is still limited compared to Western countries. Without financial incentives or government guarantees, private players find it unviable,” said a senior oncologist from a private hospital, requesting anonymity.

At present, Mumbai has only one operational proton therapy centre — at Tata Memorial Centre’s ACTREC campus in Navi Mumbai. However, the facility primarily serves research and selected patient groups, and slots for subsidised treatment are limited. Private hospitals offering proton therapy in other parts of India charge between ₹25 lakh and ₹35 lakh per patient, making it unaffordable for most patients.

Experts say that even in Mumbai, only a small segment of affluent patients can access such costly treatment. The high price barrier continues to limit the wider use of this advanced technology, even as demand for better and safer cancer therapies grows.

The BMC’s larger plan envisages a three-tier cancer care network: the Wadala centre would function as the apex hub for specialised care; major civic hospitals like KEM, Nair, Sion, Cooper, Shatabdi, and Rajawadi would handle diagnosis and standard treatment; while peripheral hospitals would focus on primary cancer screening and tissue collection.

Following the failure to attract bidders, civic officials said they are now deliberating whether to revise the project terms or explore alternative funding models, including the possibility of greater public investment. As of now, no final decision has been made. Deputy municipal commissioner Sharad Ughade, who oversees health projects, remained unavailable for comment despite multiple attempts.