Rs 12 Crore Monthly Expenses, Rs 2 Crore Revenue: Why Pune Cantonment Board Is Eyeing Koregaon Park Land

Koregaon Park, 27th August 2026: Facing a severe financial crunch, the Pune Cantonment Board (PCB) is exploring ways to commercially develop a 5.43-acre defence land parcel in Koregaon Park, potentially creating a significant recurring source of income for the civic body.

The property, identified as ‘C’ class land and currently administered by the cantonment board, has remained fenced and largely unused for several decades. Located in Koregaon Park, one of Pune’s high-value real estate markets, the land is considered to have considerable commercial potential.

PCB Chief Executive Officer Vidyadhar Pawar said the board has approached the Principal Directorate of Defence Estates, Southern Command, seeking the necessary statutory approval to make commercial use of the property.

“If permission is granted, we will conduct a detailed assessment of the land’s commercial potential. Given its location and the prevailing real estate market, the property could provide the board with a stable revenue stream,” Pawar said.

The cantonment board currently faces a substantial gap between its income and expenditure. It needs approximately Rs 12 crore every month to cover salaries, pensions and essential expenses, including water and electricity. However, its own monthly revenue is estimated at only around Rs 2 crore.

The board has been relying heavily on financial assistance from the Ministry of Defence to bridge the deficit. Pawar said the PCB received a Rs 25 crore grant from the ministry about two months ago to meet its immediate financial requirements.

A senior cantonment official said the board’s financial constraints have begun affecting routine civic services, including road repairs, maintenance of street lights and upkeep of gardens.

“With limited funds available, maintaining basic civic infrastructure has become difficult. Complaints from residents are increasing, so identifying sustainable sources of revenue has become essential,” the official said.
Old court land on MG Road also under consideration
The PCB is also waiting for approval to commercially utilise another property — its old court land parcel on MG Road.

Officials said several development models could be considered once the necessary permissions are obtained. These may include a commercial project through a public-private partnership or construction and operation of the facility directly by the cantonment board.

A cantonment official said the objective would be to create a development model capable of generating long-term income rather than relying only on one-time revenue.

Meanwhile, real estate professionals and civic activists have urged the board to conduct an independent valuation and detailed feasibility assessment of both properties before taking a final decision.

A real estate expert said the Koregaon Park property’s location could support a commercially viable development and generate substantial recurring revenue if planned appropriately.

Urban planning specialists have also suggested that the PCB examine options such as long-term leasing, rental arrangements and revenue-sharing agreements. They cautioned against permanently transferring development rights, saying the board should prioritise models that preserve its long-term financial interest in the properties.