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PMC proposes ₹13,995 crore budget with focus on urban mobility
Under the urban mobility plan, PMC intends to develop at least one key road in each of the merged villages and complete several missing road links across the city
After a gap of four years, Pune municipal commissioner Naval Kishore Ram presented the Pune Municipal Corporation’s (PMC) draft budget before the standing committee, proposing an outlay of ₹13,995 crore for the financial year 2026–27 with a strong focus on urban mobility and infrastructure development.
Presenting the budget on Monday, the commissioner said that improving mobility infrastructure, land acquisition for roads, and the development of the newly merged 34 villages would be the key priorities.
“I have proposed a ₹13,995 crore budget. Though the figures appear high considering the current income, we are expecting improved revenue in the coming year. Urban mobility has been given the highest priority with an allocation of ₹1,800 crore,” Ram said.
Under the urban mobility plan, PMC intends to develop at least one key road in each of the merged villages and complete several missing road links across the city. The civic body plans to add about 65 km of road network over the next year, along with the widening of existing roads.
Compared to previous years, the civic body has increased the allocation for road development under the urban mobility component by ₹500 crore, the commissioner said.
In a significant move, PMC has also earmarked ₹400 crore for land acquisition, the first such major provision in recent years, to facilitate road projects. The civic body plans to acquire land primarily for road development, with compensation through a mix of Transferable Development Rights (TDR) and cash payments.
“Many land acquisitions were getting delayed because landowners were demanding cash compensation instead of TDR. Therefore, we have decided to allow cash compensation for smaller plots to speed up road projects,” Ram said.
The civic body also plans to improve traffic junctions and upgrade signal systems across the city. The commissioner noted that while the PMC continues to develop roads, encroachments along these roads remain a major challenge, and the administration will create a mechanism to act against such encroachments.
Footpaths and environment get dedicated allocations
The commissioner said PMC will also prioritise pedestrian infrastructure, earmarking ₹85 crore for footpath development across the city.
“For the first time, we have made a substantial allocation specifically for footpaths. A model footpath project has already been initiated in the Model Colony area. The aim is to develop walkable, levelled footpaths and keep them free of encroachments,” he said.
The civic body has also allocated ₹75 crore for environmental initiatives, marking an increase over previous budgets where such provisions were relatively modest.
Focus on infrastructure in merged villages
Another major focus of the budget is the development of the 34 villages that were merged into PMC limits in recent years.
“While core city areas have relatively better infrastructure, the entry and exit zones and newly merged areas lack proper roads, drainage and water supply. Our focus will be on improving basic infrastructure in these areas,” Ram said.
PMC has allocated ₹350 crore for water pipeline development, ₹750 crore for sewerage projects and ₹110 crore for road works in these areas.
The commissioner added that the civic body expects higher revenue from building permissions in the merged areas as several real estate projects are expected to come up there.
No allocation yet for underground utility network
Although the state government had earlier proposed an ambitious underground utility corridor project for Pune, the draft civic budget does not include a major allocation for it.
Ram clarified that ₹15 crore has been earmarked only for preparing the Detailed Project Report (DPR) for the project at this stage.puneletters@hindustantimes.com
