Pune Municipal Corporation Allocates INR 954 Crore for Infrastructure Upgrades in Merged Villages

Published: March 15, 2026 | Category: Real Estate Pune
Pune Municipal Corporation Allocates INR 954 Crore for Infrastructure Upgrades in Merged Villages

The Pune Municipal Corporation (PMC) has allocated INR 954 crore in its draft budget for the financial year 2026-27 to fund infrastructure development in villages that were merged into the city's municipal limits over the past several years. The proposal was presented earlier this week by municipal commissioner Naval Kishore Ram as part of the civic body's overall draft budget of approximately INR 13,995 crore.

The allocation is intended to address gaps in civic infrastructure in the newly incorporated areas, many of which have experienced rapid urbanisation following their administrative merger with the municipal corporation. Officials said the funding will be directed towards basic urban services such as road construction, water supply systems, sewage networks, and drainage infrastructure, which remain inadequate in several of these peripheral zones.

Over the past decade, Pune has expanded its municipal boundaries through the inclusion of several surrounding villages in phases. In total, 34 villages have been merged into the PMC limits since 2017, bringing a large suburban population under the civic body's jurisdiction. The expansion has significantly increased demand for urban infrastructure and municipal services in these areas.

A substantial portion of the INR 954 crore allocation is expected to be directed towards water supply infrastructure and pipeline networks. According to officials involved in the budget preparation, approximately INR 350 crore has been earmarked for water supply upgrades, while additional funds will be spent on sewage infrastructure and road development projects aimed at improving connectivity within the merged localities.

The investment also follows a recent administrative change affecting several merged villages. Earlier this year, the state government transferred planning authority for 23 villages from the Pune Metropolitan Region Development Authority (PMRDA) to the PMC, giving the civic body full responsibility for urban planning and infrastructure development in those areas. The shift has placed greater pressure on the municipal administration to expand civic facilities and integrate the villages into the city's planning framework.

Municipal officials indicated that the infrastructure spending is expected to improve service delivery and support planned urban growth in these areas. The development of roads, drainage systems, and water networks is also intended to address long-standing complaints from residents regarding inadequate civic amenities despite the areas' inclusion within city limits.

The proposed infrastructure outlay forms part of the broader FY2026-27 municipal budget, which includes significant allocations for road construction, urban mobility projects, and water supply expansion across Pune. The civic administration has also projected higher revenue from building permissions and property tax collections as development activity increases in newly urbanised zones.

Officials said the targeted infrastructure spending in merged villages is intended to bring these areas in line with civic standards available in the older parts of the city while supporting continued urban expansion on Pune's metropolitan fringe.

Stay Updated with GeoSquare WhatsApp Channels

Get the latest real estate news, market insights, auctions, and project updates delivered directly to your WhatsApp. No spam, only high-value alerts.

GeoSquare Real Estate News WhatsApp Channel Preview

Never Miss a Real Estate News Update — Get Daily, High-Value Alerts on WhatsApp!

Frequently Asked Questions

1. What is the total allocation for infrastructure development in newly merged villages?
The Pune Municipal Corporation (PMC) has allocated INR 954 crore in its draft budget for FY2026-27 for infrastructure development in newly merged villages.
2. How many villages have been merged into the PMC limits since 2017?
A total of 34 villages have been merged into the PMC limits since 2017.
3. What is the primary focus of the INR 954 crore allocation?
The primary focus of the INR 954 crore allocation is to address gaps in civic infrastructure, including road construction, water supply systems, sewage networks, and drainage infrastructure in the newly merged areas.
4. How much of the allocation is earmarked for water supply upgrades?
Approximately INR 350 crore has been earmarked for water supply upgrades in the newly merged villages.
5. What recent administrative change has affected the planning authority for the merged villages?
The state government recently transferred planning authority for 23 villages from the Pune Metropolitan Region Development Authority (PMRDA) to the PMC, giving the civic body full responsibility for urban planning and infrastructure development in those areas.