Pune Municipal Corporation Unveils INR 13,995 Crore Budget Focused on Urban Mobility and Infrastructure

The Pune Municipal Corporation (PMC) has proposed a draft budget of INR 13,995 crore for the financial year 2026-27, placing significant focus on strengthening urban mobility, road infrastructure, and development in newly merged areas of the city. This ambitious budget aims to address the growing urban needs and improve the quality of life for Pune's residents.

Municipal Commissioner Naval Kishore Ram presented the budget before the civic standing committee earlier this week. The administration indicated that improving road connectivity, acquiring land required for infrastructure projects, and accelerating development in the 34 villages that were recently merged into the city limits would remain key priorities for the civic body.

The civic administration acknowledged that the proposed budget size appears ambitious compared to the current revenue position. However, it expects income to improve during the next financial year, which would support the planned spending on infrastructure and development projects.

Urban mobility has received the highest allocation in the proposed budget. Around INR 1,800 crore has been earmarked for road and transport infrastructure works across the city. This includes construction of new roads, widening of existing stretches, and completion of several missing road links. The civic body plans to develop at least one major road in each of the newly merged villages. In addition, around 65 kilometres of new roads are expected to be constructed across Pune during the year as part of the mobility improvement plan.

Officials noted that the allocation for road development under the urban mobility component has been increased by around INR 500 crore compared with earlier budgets, reflecting the administration's emphasis on improving connectivity. To support these projects, PMC has also set aside INR 400 crore for land acquisition required for road development. Landowners are expected to be compensated through a combination of Transferable Development Rights (TDR) and direct cash payments.

The civic administration indicated that several infrastructure projects in the past had faced delays as some landowners preferred cash compensation instead of TDR. To ensure that road projects move ahead faster, the administration has decided to offer cash payments in cases where smaller land parcels are involved.

Pedestrian infrastructure has also been included in the budget proposals. Around INR 85 crore has been allocated for the development and improvement of footpaths across the city. A model footpath initiative has already been launched in the Model Colony area with the aim of creating levelled and encroachment-free pedestrian pathways.

Environmental initiatives have also received a higher allocation in the proposed budget. The civic body has earmarked INR 75 crore for environmental projects, which is higher than allocations in previous years.

A significant share of the spending has also been directed towards improving basic infrastructure in the 34 villages that were recently merged into the PMC limits. These areas have witnessed rapid urban expansion in recent years but continue to face gaps in basic civic infrastructure. Under the proposed plan, INR 350 crore has been allocated for laying water pipelines in these areas. Sewerage infrastructure projects have been assigned INR 750 crore, while another INR 110 crore has been proposed for road development works within the merged villages.

The development of these villages has become a priority for the civic body after they were brought within the municipal limits in phases over the past few years, increasing the city's administrative responsibility and infrastructure requirements.