Pune Seeks ₹1,167 Crore Loan For Water, Sewage Projects
Pune Municipal Corporation seeks loan for infrastructure projects. Union government to cover 25% of costs.

The Pune Municipal Corporation (PMC) has approached the International Finance Corporation (IFC) for a ₹1,167-crore loan to fund half of a ₹2,334-crore infrastructure package. The package, proposed under the Union government’s Urban Challenge Fund (UCF), will focus on improving water supply, sewage treatment, and flood management in Pune.
The proposed funding model will see the Union government cover 25% of the project cost, while the PMC will contribute an additional 25%. The civic body has allocated ₹500 crore for its share in the 2026-27 budget. Municipal Commissioner Naval Kishore Ram stated that the PMC will enter into agreements with the IFC covering project financing, technical assistance, and implementation.
Of the ₹2,334-crore proposal, the Centre has approved projects worth ₹1,290 crore, covering water supply and disaster management. The sewage treatment project, worth ₹1,044 crore, is still awaiting approval. The proposed investment comes as the PMC continues to deal with infrastructure gaps in areas added to its limits. The civic area expanded from 125 sq km in 1987 to 508 sq km in 2021.
Several newly merged villages still lack adequate drinking water, sewage systems, and storm-water drainage. A ₹890-crore water supply project has been proposed for 12 villages facing major water supply issues. These villages include Khadakwasla, Nanded, and Nandoshi, among others. Residents in these areas currently receive only chlorinated raw water and do not have regular access to treated drinking water through pipelines.
The project includes a 200 MLD water treatment plant at Khadakwasla, which will also serve four additional villages. It will also include 71 km of transmission pipelines and 390 km of distribution lines. Flood management is another major part of the proposal, with the PMC identifying nearly 300 flood-prone locations across 23 sub-catchments.
The civic body has proposed 103 km of drainage improvement work at an estimated cost of ₹400 crore. The work will include widening and deepening existing drains, along with the construction of culverts, pipe drains, and box drains. The PMC has also planned 1,070 km of rainwater channels within the old civic limits, covering 243 sq km.
So far, 220 km of channels and 101 culverts have been completed. Under the National Disaster Management Authority scheme, 66 flood-prone locations have been identified. Work has been completed at 29 locations and is currently underway at 13 others. The proposed ₹1,044.13-crore river improvement project aims to improve sewage treatment in the city.
The PMC's efforts to improve water supply, sewage treatment, and flood management are crucial for the city's development. With the proposed investment, the civic body aims to address the infrastructure gaps in the city and provide better services to its residents. The success of these projects will have a significant impact on the quality of life for Pune's residents and will contribute to the city's overall growth and development.
In conclusion, the Pune Municipal Corporation's proposal for a ₹1,167-crore loan from the IFC is a significant step towards improving the city's infrastructure. The proposed projects will address the city's water supply, sewage treatment, and flood management issues, and will have a positive impact on the lives of Pune's residents.
Frequently asked questions
What is the purpose of the ₹1,167 crore loan sought by the Pune Municipal Corporation?
The loan is to fund half of a ₹2,334-crore infrastructure package proposed under the Union government’s Urban Challenge Fund (UCF) to improve water supply, sewage treatment, and flood management in Pune.
How will the project costs be shared between the Union government and the Pune Municipal Corporation?
The Union government will cover 25% of the project cost, while the PMC will contribute an additional 25%.