PMC plans Rs 2,000 crore infrastructure push for merged villages, eyes loan at 7.3% interest

Pune, October 24, 2026: The Pune Municipal Corporation (PMC) is planning infrastructure works worth about Rs 2,000 crore for the newly merged villages and other parts of the city. To raise money for the works, it is exploring a loan under the Centre's Urban Challenge Fund.

The civic body has ascertained the possibility of a loan from a leading bank at an interest rate of 7.3 per cent. Municipal Commissioner Naval Kishore Ram said on Friday that talks would be held to bring the rate down further.

The proposals include a Rs 890 crore water supply scheme for the merged villages. A flood control proposal worth about Rs 400 crore at 304 identified locations within the old limits has also been made. Sewage management facilities will also be set up in the merged areas.

A senior delegation of the World Bank Group and the International Finance Corporation (IFC) visited the PMC on Friday. The delegation was led by Mara Warwick, regional practice director for water. Possible financial assistance for the city's infrastructure projects, technical cooperation and strengthening institutional capacity were discussed with them.

The municipal administration presented its project proposals to the delegation, and the delegation responded positively, Ram said. The projects are expected to receive financial assistance from the Central and state governments. The PMC will have to borrow to meet the remaining cost.

The proposed water supply project for the 12 merged villages is expected initially to benefit about four lakh residents. The number of beneficiaries is estimated to rise to 7.78 lakh by 2052. The project is therefore expected to be important in strengthening the water supply system in these areas.

The PMC also presented a plan for flood mitigation works at 304 locations to reduce the city's flood risk. About Rs 400 crore is expected to be spent on this.

For sewage management in the merged villages, the proposal is to set up seven sewage treatment plants (STPs) and a sewer network about 357 km long.

At the meeting, Additional Municipal Commissioner Pavneet Kaur presented the proposals under the Urban Challenge Fund. The municipal administration is examining financing options to speed up infrastructure works in the merged areas and keep the cost of borrowing low.