Pune: The PMC has allocated approximately Rs954 crore to newly merged areas in its draft budget for 2026-27. This marks the first municipal budget since newly elected corporators from these regions took charge, following intense demands from both citizens and representatives to accelerate infrastructure development. The budget, drafted by Pune Municipal Corporation (PMC) commissioner Naval Kishore Ram, relies heavily on projected revenue from building permissions and property taxes in these suburban fringes. “We anticipate a significant increase in revenue from building permissions as development picks up in these areas. The PMC is also expecting funds and cleared dues from the state govt to support these improvements,” Ram said.In his speech, the PMC commissioner said 11 villages were merged into PMC limits in 2017 (with two later excluded), followed by an additional 23 villages in 2021. Following a state notification on Feb 11, 2026, the Pune Metropolitan Region Development Authority (PMRDA) was stripped of its status as the special planning authority for these 23 villages. Consequently, the PMC now serves as the sole planning authority for these jurisdictions. “Priority must be given to integrated development to address the current deficit in basic infrastructure,” Ram said. “This budget aims for inclusive growth, balancing rapid urbanisation with our available resources and financial constraints.” Ram said that Pune’s landscape has undergone a massive transformation, fuelled by expansion of IT global capability centres (GCCs). He emphasised that the merged areas must be developed to ensure uniform growth across the entire municipal limits.The budget has allocated funds for drainage, water supply, roads, and other projects for the newly merged areas. For example, Rs103 crore has been allocated for roads and allied infrastructure. The civic body plans to build footpaths of international standards in 32 areas. Additionally, Rs 151 crore has been earmarked for sewage, including building sewage line networks worth Rs75 crore in 11 areas and Rs76 crore in 16 areas, and Rs350 crore for non-project-related works and revenue expenditure. Nandkishor Jagtap, head of the PMC water supply department, confirmed plans to introduce a 24×7 water supply project and upgrade existing pipelines. The civic body has set aside Rs350 crore for water supply infrastructure dedicated to the newly merged areas. Aniruddha Pawaskar, city engineer, PMC, said the administration has taken steps for planned real estate development of these areas. “Since more construction and redevelopment is likely in the fringes now, the demand for building permits from these areas will go up. It will boost the PMC’s revenue from development charges and building permissions,” he said.“The newly merged areas were deprived of basic infrastructure. The administration should give first priority to these areas,” said Sopan (kaka) Chavan, a corporator from Sinhagad Road–Khadakwasla area.
