PMRDA eyes bonds, PPP route to finance key infra projects in Pune, Pimpri-Chinchwad

PMRDA is considering raising up to 50% of funds through loans, bonds, and PPP models to finance key infrastructure projects aimed at easing traffic congestion in Pune and Pimpri-Chinchwad

PUNE: The Pune Metropolitan Region Development Authority (PMRDA) is considering raising up to 50% of funds through loans, bonds, and public-private partnership (PPP) models to finance key infrastructure projects aimed at easing traffic congestion in Pune and Pimpri-Chinchwad.

PMRDA is considering raising up to 50% of funds through loans, bonds, and PPP models to finance key infrastructure projects aimed at easing traffic congestion in Pune and Pimpri-Chinchwad. ((PIC FOR REPRESENTATION))

Major projects under consideration include the proposed Yerawada-Katraj underground twin tunnel and the Pawana river rejuvenation plan. The authority is also planning to seek financial assistance from the state and central governments, while assessing eligibility for funds under the Centre’s urban challenge fund.

As per funding norms, at least 50% of the project cost must be mobilised through loans, bonds, or PPP models to qualify for central assistance. The PMRDA will need to align the financial structure of projects such as the Pawana, Indrayani, and Mula-Mutha river improvement plans, along with the underground tunnel, to meet these criteria.

The proposed 20-km-long Yerawada-Katraj underground twin tunnel, estimated to cost around ₹7,000 crore, is expected to function as an internal underground ring road for Pune city. While the ring road projects being implemented by the MSRDC and PMRDA cater to outer traffic movement, the tunnel aims to reduce congestion within the city and cut travel time for commuters. A feasibility study for the project is currently underway.

Officials said that the PMRDA will have to take a final call soon on the funding model, given the requirement of mobilising at least 50% of the project cost independently to secure central funding.

Meanwhile, under the river improvement initiative, a ₹218.07 crore project has been planned to clean the Pawana river. The project will focus on treating sewage flowing through nullahs such as Pimple Khunte, Bebadohol, Shivane, Urse, Somatane, and Dhamane before it enters the river.

In keeping with the guidelines of the Central Pollution Control Board (CPCB) and the National Green Tribunal (NGT), sewage treatment plants will be set up to reduce biological oxygen demand (BOD) and chemical oxygen demand (COD) levels in the river.

Tenders for the project are expected to be floated soon.

A senior PMRDA official said, “Funds for large-scale infrastructure projects will be raised through bonds, and some projects may be implemented under the PPP model. We are currently exploring all possible options.”