MSRDC To Float Bonds Worth Rs 5,500 Crore To Finance Pune Ring Road Project
Pune, 24th July 2024: The Maharashtra State Road Development Corporation (MSRDC) is preparing to issue bonds to finance the much-anticipated Pune Ring Road project and the Virar-Alibaug multimodal corridor. According to a senior official, MSRDC plans to float bonds worth Rs 27,750 crore, with Rs 22,250 crore allocated for the multimodal hub and Rs 5,500 crore for the Pune Ring Road project. This decision follows challenges encountered with HUDCO’s loan offer.
“With 90% of the land acquired for the western phase of the Pune Ring Road and significant progress in land acquisition for the eastern phase, we have decided to float bonds for Rs 5,500 crore,” stated MSRDC Vice-Chairman and Managing Director Anil Kumar Gaikwad. “Construction is expected to commence post-monsoon.”
The ambitious 136-km Pune Ring Road project, which includes both eastern and western corridors, has attracted 19 bids from various companies. “We are currently evaluating the bids and will finalize the selection next month. Five companies will be chosen for different segments as the project will be executed in nine phases,” Gaikwad added.
The entire ring road, aimed at alleviating traffic congestion in Pune, is expected to be completed by September 2027. The western corridor, spanning 65.45 km, will be constructed in five phases, while the 71.35 km eastern corridor will be built in four phases.
An MSRDC official mentioned that funding for the western phase is secure, with the government obtaining a loan from HUDCO. The land acquisition alone is projected to cost Rs 10,000 crore, covering 1,900 hectares across 87 villages. Additional funds are being sought from the state government.
As Pune prepares for this transformative project, the ring road is set to significantly improve traffic flow and mark a major milestone in the city’s urban development. A town planner commented, “The ring road will reshape traffic dynamics in Pune, providing much-needed relief from congestion.”
In addition to the ring road, the Virar-Alibaug multimodal corridor will span 136 km. The Virar-Alibaug Metro rail project, the longest in the Mumbai Metropolitan Region, will require an estimated Rs 55,000 crore. This marks the first time MSRDC, traditionally focused on constructing roads, bridges, and flyovers, is undertaking a Metro rail project, the official noted.
