Pune: Municipal Corporation to Secure Loan for Enhanced Sewage System in Villages
Pune, 28th June 2023: In an effort to enhance the sewage infrastructure in villages that have been included within the municipal limits, the Pune Municipal Corporation (PMC) has reached an agreement with the International Finance Corporation (IFC) to secure a loan. This collaboration will pave the way for the establishment of sewage treatment projects in these villages.
Between October 2017 and June 2021, a total of 34 villages were merged into the municipal limits. The municipal administration has prepared a comprehensive sewage plan worth 423 crore for the villages included in October 2017. The municipal corporation’s budget had also mentioned the intention to raise a loan for the implementation of sewage systems in these villages. As a result, an agreement has been finalized with the International Financial Corporation, which will conduct assessments and develop plans for sewage treatment centers, thus increasing their number in the villages.
In an effort to prevent sewage from entering the city’s riverbed, the municipal corporation has already undertaken the Jayka project. Under this initiative, eleven new sewage treatment plants are set to be constructed within the city. The project has been included in the National River Improvement Scheme, and the Central Government has entered into an agreement with JICA based in Japan. The Central Government will secure a loan of 980 crores from JICA, which will then be provided to the municipal corporation as a subsidy. The project is currently underway.
The included villages currently lack a sewerage system, and the municipality aims to address this by implementing a sewage treatment project. As per the agreement, the International Financial Corporation will serve as a consultant for the project, which is estimated to cost 1,000 crores. The corporation will conduct a detailed study of the project and provide guidance to the Municipal Corporation on securing a long-term loan and determining an appropriate interest rate. In the first phase, a loan of at least Rs 300 crore is expected to be acquired for sewage treatment projects in the involved villages.
Previously, the Municipal Corporation obtained a loan bond worth 200 crores for a water supply scheme. Subsequently, the municipal administration initiated further efforts to secure another loan for this scheme. While the municipal corporation plans to acquire a loan for the sewage system, questions remain regarding the actual improvement of the sewage infrastructure in the included villages.
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