Half Funding Via PPP & Loans: PMRDA Prepares Strategy For Mega Projects In Pune Metropolitan Region

Pune: The Pune Metropolitan Region Development Authority (PMRFA) is planning to raise up to half of the funds needed for major infrastructure projects through loans, bonds, and public-private partnerships. The move is aimed at easing growing traffic congestion in Pune and Pimpri-Chinchwad.

Officials said that the authority is working on key projects such as the proposed Yerawada–Katraj underground twin tunnel and river improvement plans. These include the rejuvenation of the Pawana, Indrayani, and Mula-Mutha rivers. The agency is also exploring financial help from both the state and central governments.

Under current rules, projects must arrange at least 50% of their cost through loans, bonds, or PPP models to qualify for central funding. PMRDA is now preparing funding structures to meet these conditions. It is also checking whether the projects can be included under the Centre’s Urban Challenge Fund.

One of the most ambitious proposals is the 20-km Yerawada–Katraj underground twin tunnel. The project is expected to cost around ₹7,000 crore. It is planned as an internal ring road beneath the city to reduce travel time and cut traffic within Pune. A feasibility study for the tunnel is currently underway.

Officials said that while outer ring road projects by the Maharashtra State Road Development Corporation and PMRDA aim to divert traffic around the city, this tunnel will directly address congestion inside the city.

Pawana River Restoration…

Authorities said a decision on how to fund these projects will have to be made soon. This is because securing at least half of the funds independently is necessary to unlock central assistance.

Alongside transport projects, PMRDA is also focusing on river restoration. A ₹218.07 crore project has been proposed for the Pawana River. The plan aims to treat sewage from several drains, including Pimple Khunte, Bebadohol, Shivane, Urse, Somatane, and Dhamane, before it enters the river.

To meet environmental standards set by the Central Pollution Control Board and the National Green Tribunal, sewage treatment plants will be installed. These will help reduce pollution levels by controlling biological oxygen demand (BOD) and chemical oxygen demand (COD) in the water.

Officials said tenders for the Pawana River project are expected to be issued soon.

A senior PMRDA official said that large infrastructure projects are likely to be funded through bonds, while some may be taken up under PPP models. He added that all possible funding options are currently being studied before a final decision is made.