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PMCs ₹8Crore SAP System UnderutilizedRaising Concerns Over Administrative Efficiency

Desk_dcn by Desk_dcn
March 25, 2025
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PMCs ₹8Crore SAP System UnderutilizedRaising Concerns Over Administrative Efficiency
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Pune: The Pune Municipal Corporation’s (PMC) highly touted SAP computer system, introduced in 2017 at a cost of ₹8 crore, is facing criticism due to its limited usage across departments. Despite being a globally recognized software designed to enhance efficiency, its implementation has fallen short of expectations.

PMC initiated the SAP system in November 2017, appointing Atos Origin to complete installation within a year and provide four years of support. However, even after its official launch on April 1, 2022, key departments continue to operate on older systems. Instead of fully transitioning, municipal staff still rely on traditional methods, with this year’s budget prepared using Excel rather than the SAP software—raising concerns among citizens.

The system was designed with two primary modules: finance and materials. While it was expected to streamline financial operations and inventory management, its adoption has remained inconsistent. Notably, the store department has yet to implement SAP, and the finance department uses it sparingly, preventing the system from achieving its intended impact.

The SAP software boasts advanced reporting features, including the capability to generate a balance sheet within two days. However, due to lack of proper integration, its full potential remains unrealized. Activist Vivek Velankar, President of Sajag Nagrik Manch, has voiced concerns over PMC’s reluctance to fully adopt the system. “It is highly unfortunate that despite having such an advanced tool, the finance department still relies on Excel for budget preparation,” he remarked, questioning the administration’s commitment to digital transformation.

Although ₹8 crore has been invested in this system, PMC has not put in place any structured approach to resolve its implementation challenges. The reluctance to switch over entirely has raised serious doubts about the municipal body’s efficiency and accountability.

With mounting pressure from citizens and activists, the PMC now faces the challenge of ensuring that this costly digital upgrade serves its intended purpose—enhancing efficiency and transparency in municipal operations.

Tags: #PMC #SAPSystem #DigitalTransformation #Governance #MunicipalCorporation #PublicAccountability #TechnologyFailure #PuneNews #E-Governance #Transparency
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