Pune Municipal Corporation Seeks ₹1,167 Crore IFC Loan For Water, Sewage And Flood Control Projects

Pune: The Pune Municipal Corporation (PMC) has approached the International Finance Corporation (IFC) for a ₹1,167-crore loan to fund half of a ₹2,334-crore infrastructure package proposed under the Union government’s Urban Challenge Fund (UCF).

The projects will focus on improving water supply, sewage treatment and flood management in Pune. Under the proposed funding model, the Union government will cover 25% of the project cost, while the PMC will contribute an additional 25%. The civic body has allocated ₹500 crore for its share in the 2026-27 budget.

Municipal Commissioner Naval Kishore Ram said the PMC will enter into agreements with the IFC covering project financing, technical assistance and implementation.

Centre Approves ₹1,290 Crore in Projects

Of the ₹2,334-crore proposal, the Centre has approved projects worth ₹1,290 crore covering water supply and disaster management. The sewage treatment project worth ₹1,044 crore is still awaiting approval.

The proposed investment comes as the PMC continues to deal with infrastructure gaps in areas added to its limits. The civic area expanded from 125 sq km in 1987 to 508 sq km in 2021. Several newly merged villages still lack adequate drinking water, sewage systems and storm-water drainage.

₹890 Crore Water Supply Project for 12 Villages

A ₹890-crore water supply project has been proposed for 12 villages facing major water supply issues. These include Khadakwasla, Nanded, Nandoshi, Sanasnagar, Kirkatwadi, Dhayri, Narhe, Jambhulwadi, Kolhewadi, Mangdewadi, Nimbalkarwadi and Bhilarewadi.

Residents in these areas currently receive only chlorinated raw water and do not have regular access to treated drinking water through pipelines.

The project includes a 200 MLD water treatment plant at Khadakwasla, which will also serve four additional villages. It will also include 71 km of transmission pipelines and 390 km of distribution lines.

Flood Control Plan Covers 300 Vulnerable Areas

Flood management is another major part of the proposal. The PMC has identified nearly 300 flood-prone locations across 23 sub-catchments.

The civic body has proposed 103 km of drainage improvement work at an estimated cost of ₹400 crore. The work will include widening and deepening existing drains, along with the construction of culverts, pipe drains and box drains.

The PMC has also planned 1,070 km of rainwater channels within the old civic limits, covering 243 sq km. So far, 220 km of channels and 101 culverts have been completed.

Under the National Disaster Management Authority scheme, 66 flood-prone locations have been identified. Work has been completed at 29 locations and is currently underway at 13 others.

₹1,044 Crore Sewage Project Awaits Approval

The proposed ₹1,044.13-crore river improvement project aims to prevent sewage from entering the Mula-Mutha river.

The project includes 357 km of sewer networks covering seven villages. It also proposes sewage treatment plants with capacities of 45 MLD at Manjari and 18.5 MLD at Holkarwadi.

Two additional STPs with a combined capacity of 63.5 MLD and six more plants with a total capacity of 111.5 MLD are also part of the plan.

The PMC hopes the proposed funding will help address long-standing infrastructure gaps in the city and newly merged villages while strengthening Pune’s water supply, sewage management and flood preparedness.