Pune Ring Road Budget Increases by ₹105.02 Billion
Maharashtra government allocates additional funds for Pune Ring Road project amid rising costs and financial challenges.
The Pune Ring Road's total estimated cost now stands at ₹532.13 billion.
The Maharashtra State Road Development Corporation will manage the additional funding.
Maharashtra's public debt is projected to reach ₹1.1 trillion by 2026-27.
The Maharashtra government has recently approved an additional allocation of ₹105.02 billion for the Pune Ring Road project, bringing the total estimated cost to ₹532.13 billion. This decision was made after the National Highways Authority of India (NHAI) did not prioritize a crucial segment of the road. The funds will be transferred to the Maharashtra State Road Development Corporation (MSRDC), which is already managing land acquisition expenses for the project.
The Cabinet sub-committee on infrastructure granted revised administrative approval on August 18, 2026. The new allocation will cover civil works and land acquisition costs that were initially assigned to NHAI. The government emphasized the importance of completing this stretch to ensure the ring road fulfills its intended purpose of alleviating traffic congestion around Pune.
The project's financial trajectory has seen significant increases, with costs rising to ₹427.11 billion in 2024 after a previous escalation of ₹203.75 billion. Initially estimated at ₹101.6 billion in September 2021, the eastern stretch's length increased from 68.19 km to 72.335 km, resulting in a revised cost of ₹199.33 billion. Similarly, the western stretch's costs escalated from ₹121.76 billion to ₹227.78 billion during the same timeframe.
Designed to ease congestion, the ring road features both eastern and western sections. The eastern segment connects Urse on the Mumbai-Pune Expressway with Solu and Sortapwadi, while the western section extends from Urse to Varve Budruk along the Pune-Satara road. A portion of the road, measuring 31.805 km, will also be utilized by the proposed Pune-Chhatrapati Sambhajinagar Greenfield Expressway.
This additional funding comes at a time when Maharashtra is grappling with various financial commitments. The state's outstanding public debt is expected to hit ₹1.1 trillion by the 2026-27 fiscal year, with a revenue deficit projected at ₹405.52 billion. The state government is also focusing on welfare initiatives, including monthly payments for women and agricultural support, while facing a fiscal deficit estimated at ₹1.5 trillion, representing 2.8% of the Gross State Domestic Product.
