Pune: PCMC to Use Rs 550 Crore From Fixed Deposits for Water Projects, Faces Criticism Over Deteriorating Financial Health

Pimpri Chinchwad, 25th June 2026: The Pimpri Chinchwad Municipal Corporation (PCMC), once regarded as one of the wealthiest civic bodies of Asia, has decided to fund key water supply projects by drawing from its fixed deposits instead of raising loans, signalling growing pressure on its finances amid mounting infrastructure commitments.

The civic body’s Standing Committee on Wednesday approved a proposal to utilise around Rs 550 crore from municipal deposits for projects linked to bringing reserved water from the Andra and Bhama Askhed dams and strengthening the city’s water supply network.

The projects are considered crucial for meeting the drinking water needs of Pimpri Chinchwad’s rapidly growing population. Although the state government had reserved water from the two dams for the city in September 2023, implementation of the projects was delayed for nearly three years due to political uncertainty and administrative hurdles.

Civic officials said the projects have now gained momentum and require substantial funding. Earlier, the administration had explored the possibility of raising loans for the works. However, the municipal corporation has now opted to utilise its own funds.

According to municipal records, PCMC had fixed deposits worth about Rs 1,076 crore as of March 2026. In addition, the civic body has a reserve fund of around Rs 2,450 crore. The Standing Committee has approved the use of Rs 550 crore from these reserves for water supply-related expenditure.

Standing Committee Chairman Abhishek Barne said the funds earmarked for reserve deposits would not be diverted elsewhere and would be used only for water infrastructure projects.

“The corporation has adequate funds available. Instead of borrowing and paying interest, it is prudent to utilise our own resources for critical water supply works. Around Rs 550 crore will be required for these projects and the expenditure will be met from municipal funds,” Barne said.

Officials said the decision would reduce the need for external borrowing but would also result in a decline in the corporation’s deposit corpus, which has historically been seen as a measure of PCMC’s financial strength.

The move has also triggered debate among political parties, with opposition leaders arguing that the civic body’s growing dependence on its deposits reflects financial strain after years of spending on large-scale projects. They have called for greater scrutiny of the corporation’s fiscal management and long-term financial planning.