Pune: Rs 2,000cr Infra Plan For Merged Villages; PMC Eyes Loan From World Bank
Pune, 24th October 2026: The Pune Municipal Corporation (PMC) is planning infrastructure projects worth around Rs 2,000 crore for the newly merged villages and other parts of the city, and is exploring loans under the Centre’s Urban Challenge Fund to finance the works.
The civic body has secured the possibility of borrowing at an interest rate of 7.3% from a leading bank and will negotiate to bring the rate down further, municipal commissioner Naval Kishore Ram said on Friday.
The proposals include a Rs 890-crore water supply project for the merged villages, flood-control works worth around Rs 400 crore at 304 identified locations in the older civic limits, and sewage management infrastructure in the merged areas.
A senior delegation from the World Bank Group and the International Finance Corporation (IFC), led by Mara Warwick, regional practice director for water, visited the PMC on Friday to discuss potential financial assistance, technical cooperation and institutional capacity-building for the city’s infrastructure projects.
The civic administration presented its project proposals to the delegation, which responded positively, Ram said. The projects are expected to receive financial assistance from the Centre and the state government, with the PMC required to borrow funds to meet the remaining expenditure.
The proposed water supply project for the 12 merged villages is expected to initially benefit around four lakh residents. The number of beneficiaries is projected to rise to 7.78 lakh by 2052, making the project crucial to strengthening the water supply network in these areas.
The PMC also presented a plan to undertake flood-mitigation works at 304 locations at an estimated cost of Rs 400 crore to reduce flooding in the city.
For sewage management in the merged villages, the civic body is proposing seven sewage treatment plants (STPs) and a network of around 357km of sewage pipelines.
Additional municipal commissioner Pavneet Kaur presented the proposals under the Urban Challenge Fund during the meeting. The civic administration is exploring financing options to accelerate infrastructure development in the merged areas while reducing the cost of borrowing.
