Pune Cantonment Board plans PPP development of three properties to raise revenue

The Pune Cantonment Board has decided to develop three key properties in its area for commercial use to open new sources of income. The work will be done on a public-private partnership (PPP) model. The properties are at Koregaon Park, Dhobi Ghat and Mahatma Gandhi Road (MG Road). The board is currently under severe financial strain.

The board has sent a proposal to the Defence Ministry for the legal approvals needed for the commercial development of these properties. Further action will begin only after the ministry's approval is received.

The board's financial condition is serious. It needs at least Rs 12 crore every month for essential expenses such as salaries and pensions of serving and retired employees, and water and electricity bills. Its monthly income is less than Rs 2 crore. For this reason, it has to depend on a grant from the Defence Ministry for day-to-day expenses.

The three properties chosen include a 5.43-acre plot at Koregaon Park, 1.5 acres of land at Dhobi Ghat, and a property of about 8,000 to 10,000 square feet on MG Road.

The Koregaon Park property is considered especially important because it lies in one of Pune's well-known and commercially significant areas. The fenced plot has been lying unused for several decades. Its commercial development could bring the board substantial earnings.

On MG Road, there is an old court property. The board is also awaiting approval for its commercial use. Options under consideration include building a commercial complex there or developing the board's own infrastructure.

A few months ago, the board received Rs 25 crore in financial assistance from the Defence Ministry for its expenses. The shortage of funds has also affected basic civic services, and people keep making various complaints. In these circumstances, the board wants to earn from its unused, valuable properties and create a lasting source of regular income.

Vijay Chavan, executive engineer of the Pune Cantonment Board, said, "A proposal has been made to give the properties at MG Road, Dhobi Ghat and Koregaon Park for commercial use on the PPP model. The proposal has been sent to the Defence Ministry. We await a decision, and further action will be taken after the ministry's approval."