PCB facing ₹800 crore crunch since 2017, causing collapse of civic governance

Pune Cantonment Board faces ₹800 crore financial crisis, struggling to provide services amid merger with PMC; urgent funding needed for infrastructure repair.

With the Pune Cantonment Board’s (PCB’s) financial crunch running into nearly ₹800 crore ever since the imposition of the Goods and Services Tax (GST) and abolition of Local Body Tax (LBT) in 2017, and the impending merger of the cantonment area with the Pune Municipal Corporation (PMC), civic governance has all but collapsed. As such, the board administration is finding it extremely difficult to deliver civic services to the area residents.

The gardens in the cantonment area are occupied by beggars, urchins and homeless people. (HT PHOTO)

PCB chief executive officer (CEO) Subrat Pal said, “The board is currently not able to provide optimum civic services to the area residents due to the financial crunch.”

However, PCB officials told Hindustan Times that the PCB is finding it difficult even to pay monthly salaries to its employees for January 2025. Currently, the PCB administration has handed over one park to a private entity for maintenance and upkeep. According to the board administration, road maintenance, garden maintenance and upkeep, traffic management, and conservancy and cleaning work requires abundant funds. Major market areas of the cantonment are putting a heavy burden on the civic amenities of the entire area.

Currently, road dividers on all arterial roads are either completely broken or have been stolen. Similarly, street light infrastructure has been badly affected due to dim lights and lack of maintenance of street poles. The gardens in the cantonment area are occupied by beggars, urchins and homeless people. Almost all the roads of the cantonment area require pothole repairs on an urgent basis.

Cantonment resident Rajabhau Chavan said, “The Centre has ignored the PCB and citizens are suffering. Hospitals, schools and water infrastructure require immediate investment along with other civic amenities like roads and gardens. The PCB needs at least ₹1,000 crore in funds to tide over the 10-year-old infrastructure decline. The administration cannot do much as they do not have any funds. The central and state governments must come together to fund the area.”

For the past two years, the PCB along with other cantonments is slated to be merged with the local body. The central government had directed the directorate of defence estates to take up the issue with the respective state governments. The director-general of defence estates (DGDE) took up the issue with the urban development department (UDD) of the Government of Maharashtra wherein the UDD secretary directed the PMC to prepare a detailed report about the modalities involved and submit the same to the state government. However, a month after preparation of the report by the PMC, it is still to be submitted to the state government for final approval.

When contacted, PMC commissioner Rajendra Bhosale said, “I will respond in some time.”