PUNE: The Pune Municipal Corporation (PMC) will raise ₹1,167 crore in commercial loans to accelerate water supply, flood control and sewage projects in the city’s newly-merged villages. The proposal was approved by the civic standing committee on Friday, chairman Shrinath Bhimale said.

PMC will raise ₹1,167 crore in commercial loans to accelerate water supply, flood control and sewage projects in the city’s newly-merged villages. ((PIC FOR REPRESENTATION))

The proposed borrowing will cover three major projects — ₹445 crore for water supply in 12 newly-merged villages, ₹200 crore for flood-control works, and ₹522 crore for sewage infrastructure in seven newly-merged villages.

For the 12 newly-merged villages, the PMC plans to build a 200 million litres per day (MLD) water treatment plant, along with about 71 km of transmission lines, distribution networks, and metering systems. The overall project is estimated to cost ₹890 crore, with ₹445 crore proposed to be funded through the loan.

The flood-control project, estimated to cost ₹400 crore, will include widening and deepening of drains, and construction of culverts and pipe drains. Of the ₹400 crore, ₹200 crore will be raised through borrowing.

For sewage infrastructure in the seven newly-merged villages, the civic body plans to spend around ₹1,044 crore, with ₹522 crore proposed to be raised through the loan. The project includes a 357-km sewage network, a 45 MLD sewage treatment plant at Manjari, and an 18.5 MLD plant at Holkarwadi.

“The loan will help speed up key infrastructure projects, particularly in the newly-merged villages where water supply, drainage and flood-control works need to be strengthened,” Bhimale said.

The PMC had last raised ₹200 crore through municipal bonds in 2017 for its equal water distribution scheme. The latest proposal is the civic body’s first major commercial borrowing since then.

The PMC will invite competitive loan proposals from nationalised and scheduled banks and financial institutions. The tenure, interest rate and repayment terms will be decided after evaluating the bids.

The civic budget for 2026-27 has made a provision of ₹400 crore for debt repayment. The projects will be executed within the available financial resources, the proposal said.