Pune’s Ring Road Budget Soars to Rs 42,711 Crore, Toll Burden Likely on Public
Pune, 17th October 2024: The Ring Road will be constructed under the Design, Build, Finance, Operate, and Transfer (DBFOT) model, with the establishment of a Special Purpose Vehicle (SPV). This independent company will function under the Maharashtra State Road Development Corporation (MSRDC), while toll collection will be managed by the National Highways Authority of India (NHAI) for forty years after the completion of the Ring Road.
Rahul Giribuwa, Additional Secretary of the Public Works Department, Maharashtra State Government, issued an order regarding this. Accordingly, a company named ‘MSRDC Pune Ring Road Limited’ (MPRRL) will be established, and the work on the eastern and western sections of the Ring Road will be carried out through this company. Contractors will only be awarded work orders once 90% of the land acquisition for both sections has been completed.
While the Maharashtra Government has ordered the closure of toll booths in Mumbai, MSRDC has been authorized to collect tolls on the Ring Road as per the same order. MSRDC will manage the Ring Road project in two sections—East and West. Although tenders were invited for intermediate road works, the bids received exceeded the previous price estimates. Due to this significant increase in the estimated cost, the Ministry of Finance of the Maharashtra Government raised objections, recommending the tender process be canceled and reissued. Despite these concerns, the Maharashtra Government approved the tenders with the increased rates.
As a result, the projected expenditure for the Ring Road has risen from Rs 20,335 crore to Rs 42,711 crore, indicating that the increased costs will likely be recovered from the public through toll collections.
