Pune: PMC Shifts Loan Strategy, Eyes JICA Funding For Merged Villages Sewage System
Pune, 6th June 2024: In the 23 newly included villages within the Pune Municipal Corporation (PMC), a robust sewage management system is crucial. PMC has allocated Rs 1,367.94 Crores for this purpose. Initially, PMC planned to secure a Rs 530 Crores loan from a bank. However, this idea has been scrapped, and instead, a loan will be pursued from the Japan International Cooperation Agency (JICA) at lower interest rates. A meeting is scheduled for next week to discuss this arrangement.
The decision to include these 23 villages in PMC was made by the Maharashtra State Government in July 2021, recognizing the area’s rapid growth. In 2017, 11 new villages were also incorporated into PMC, with sewage management projects worth Rs 392 crores already underway.
PMC plans sewage management infrastructure for the 23 villages, considering population growth projections until 2054. The plan includes 471 km of sewerage channels, with 90.42 km of main sewerage channels, costing Rs 922.65 crores. Additionally, seven sewage treatment plants with a total capacity of 201 MLD will be established, costing Rs 445 crore. A comprehensive proposal totalling Rs. 1,367 crores has been prepared.
Given the substantial cost, PMC explored bank loans, but the proposed interest rates were deemed too high. As a result, PMC is now exploring financing options with JICA. A loan of Rs 841 crore has already been secured from JICA for the Mula Mutha Purification Project, with an interest rate of less than 1% compared to market rates. Discussions with JICA are underway for the remaining Rs 834.19 crore. With the potential of securing 85 % of this amount at a low rate, PMC aims to advance its ambitious project. A meeting is scheduled for June 10 to further these discussions.
