Pune civic body seeks Rs 1,167 crore loan for Urban Challenge Fund projects

The Union government will provide 25 per cent of the project cost, while the PMC will contribute another 25 per cent.

The PMC’s area has expanded from 125 sq km in 1987 to 508 sq km in 2021, with 32 villages added in recent years. (Express File Photo)The PMC’s area has expanded from 125 sq km in 1987 to 508 sq km in 2021, with 32 villages added in recent years. (Express File Photo)

The Pune Municipal Corporation (PMC) is seeking a Rs 1,167-crore loan from the International Finance Corporation (IFC) to fund 50 per cent of a Rs 2,334-crore civic infrastructure project under the Union government’s Urban Challenge Fund (UCF). The projects focus on water supply, sewage treatment and disaster management.

The Union government will provide 25 per cent of the project cost, while the PMC will contribute another 25 per cent. The PMC’s 2026-27 budget has a provision of Rs 500 crore towards its share.

“To implement the proposed water supply, sanitation and flood control projects under the Urban Challenge Fund (UCF) of the Central Government, the Pune civic body is seeking loan from IFC for projects proposed under UCF. Thus, the PMC has to enter into agreements with IFC regarding project financing, technical assistance and implementation,” said municipal commissioner Naval Kishore Ram.

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Of the Rs 2,334-crore proposal, the Centre has approved projects worth Rs 1,290 crore covering water supply and disaster management. The Rs 1,044-crore sewage treatment project is awaiting approval.

The PMC’s area has expanded from 125 sq km in 1987 to 508 sq km in 2021, with 32 villages added in recent years. Many of the newly included villages lack adequate water supply, sewage disposal and storm-water drainage.

The Rs 890-crore water supply project will cover 12 GBS-affected villages — Khadakwasla, Nanded, Nandoshi, Sanasnagar, Kirkatwadi, Dhayri, Narhe, Jambhulwadi, Kolhewadi, Mangdewadi, Nimbalkarwadi and Bhilarewadi. The villages currently receive only chlorinated raw water and lack safe drinking water through regular pipelines.

The project includes a 200 MLD water treatment plant at Khadakwasla, which will also cater to four additional villages, besides a 71-km transmission network and 390 km of distribution lines.

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For flood control, the PMC has identified around 300 flood-prone areas across 23 sub-catchments. It has proposed 103 km of drainage improvements, including widening and deepening of drains, construction of culverts, pipe drains and box drains, at a cost of Rs 400 crore.

The PMC has planned 1,070 km of rainwater channels in the old PMC 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 areas have been identified, with work completed at 29 locations and underway at 13.

The Rs 1,044.13-crore river improvement project aims to achieve zero sewage discharge into the Mula-Mutha. It includes 357 km of sewer network for seven villages, sewage treatment plants of 45 MLD at Manjari and 18.5 MLD at Holkarwadi, two STPs with a combined capacity of 63.5 MLD and six additional STPs with a combined capacity of 111.5 MLD.

Ajay Jadhav is an Assistant Editor at The Indian Express, Pune. With over 22 years of experience in the industry, he is a highly specialized journalist whose work focuses on the intersection of urban infrastructure, governance, and sustainability. Professional Background  Role: As Assistant Editor, he plays a key role in the editorial direction of the Pune bureau, specializing in urban policy and its direct impact on citizens. Education: He holds a Master’s degree in Communication and Journalism from Savitribai Phule Pune University and a PG Diploma in Corporate Social Responsibility (CSR). He also studied at the prestigious Fergusson College. Impactful Reporting: He is credited with research-based articles on conservancy staff (waste workers) that influenced national policy for better working conditions. He is also known for exposing the contrast between high-end infrastructure (like helipads for leaders) and the lack of basic amenities like schools in their home districts. Personal Interests: An avid trekker and sports enthusiast, his personal interest in the outdoors often informs his reporting on environmental protection and sustainable development. Recent Notable Articles (December 2025) His reporting in late 2025 has been dominated by the upcoming January 2026 Civic Polls in Pune and Pimpri-Chinchwad, and the city's infrastructure boom: 1. Political Analysis (Civic Elections 2026) "Not friendly but a bitter fight lies ahead between BJP and NCP for PMC, PCMC" (Dec 22, 2025): A detailed look at the intense rivalry between the Mahayuti partners as they prepare for the January 15 municipal elections. "Pune civic polls: Big blow to NCP, NCP(SP) as leaders switch to BJP" (Dec 20, 2025): Reporting on high-profile poaching and party-hopping ahead of the elections. "Ajit Pawar's NCP continues domination in Pune, wins 10 of 17 local bodies" (Dec 21, 2025): Analyzing the results of the local self-government body elections as a precursor to the main civic polls. 2. Infrastructure & Urban Development "Looking Ahead at 2026: Pune to see inauguration of much-awaited Hinjewadi to Shivajinagar metro route" (Dec 22, 2025): An "outlook" piece on the critical Metro Line 3 project expected to finish by March 2026. "Building Pune: PMC to construct double-decker bridge over Mula-Mutha River" (Dec 18, 2025): Detailing a major project aimed at easing traffic between Hadapsar and Kharadi.  "Condition of highway from Pune to Kolhapur to improve in a year: Gadkari" (Dec 4, 2025): Reporting on the Union Minister’s assurances regarding one of the state's most critical transport corridors. 3. Civic Governance & Environment "Install sensors, LED indicators at construction sites within 15 days: PMC to builders" (Dec 16, 2025): A follow-up to the "Breathless Pune" series, reporting on new mandates for builders to monitor air quality in real-time. "Errors in electoral rolls: PMC corrects data of 92,466 voters" (Dec 16, 2025): Tracking the administrative efforts to clean up the voter lists before the 2026 elections. Signature Style Ajay Jadhav is known for accountability journalism. His work often bridges the gap between high-level policy and the "ground zero" reality of Pune's residents. He is particularly focused on Sustainable Development, ensuring that as Pune grows into a "Bharat Mandapam" style destination (referring to his report on the Lohegaon project), its environmental and social safeguards remain intact. X (Twitter): @ajay_khape ... Read More


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