Pune Cantonment Board Plans to Develop Three Prime Properties Under PPP Model to Boost Revenue
Pune 10th November 2026: Facing a severe financial crunch, the Pune Cantonment Board has decided to develop three prime properties under its jurisdiction for commercial use through the public-private partnership (PPP) model to generate new revenue streams. The properties are located in Koregaon Park, Dhobighat and on Mahatma Gandhi Road (MG Road).
The board has forwarded a proposal to the ministry of defence seeking the necessary statutory approvals for commercial development of these properties. Further action will be initiated once the ministry grants its approval.
The Pune Cantonment Board is currently grappling with a serious financial crisis. It requires at least Rs 12 crore every month to pay salaries and pensions to its serving and retired employees, besides meeting essential expenses such as water and electricity bills. However, its monthly revenue is less than Rs 2 crore, forcing it to depend on grants from the ministry of defence to meet its routine expenses.
The three properties identified for commercial development include a plot measuring 5.43 acres in Koregaon Park, 1.5 acres at Dhobighat and a property measuring around 8,000 to 10,000 sq ft on MG Road.
The Koregaon Park property is considered particularly significant because of its location in one of Pune’s prominent upscale and commercially important areas. The fenced plot has remained unused for several decades, and its commercial development could generate substantial revenue for the board.
The board is also awaiting approval for the commercial utilisation of an old court property on MG Road. Options under consideration include developing a commercial complex or creating infrastructure facilities of its own on the land.
A few months ago, the board had received financial assistance of Rs 25 crore from the ministry of defence to meet its expenses. The shortage of funds has also affected the delivery of basic civic services, with residents regularly raising complaints about various civic issues. Against this backdrop, the board is attempting to monetise its unused prime properties and create a sustainable source of regular income.
“The properties at MG Road, Dhobighat and Koregaon Park have been proposed to be given for commercial use under the PPP model. A proposal in this regard has been sent to the ministry of defence. A decision is awaited, and further action will be taken after the ministry grants its approval,” said Vijay Chavan, executive engineer, Pune Cantonment Board.
