Pune's Fringe Areas Set for a Civic Makeover

Pune's civic infrastructure story just got a major update. Pune Municipal Corporation (PMC) Commissioner Naval Kishore Ram presented a Rs 13,995 crore civic budget for the financial year 2026–27 before the Standing Committee, marking an increase of Rs 1,377 crore from the previous year. For anyone tracking property in Pune's expanding suburbs, this budget carries real weight — a large chunk of it is earmarked specifically for the fringe villages that have long lagged behind the core city in basic amenities.

The headline admission from the civic body itself is telling. The civic administration has acknowledged that basic infrastructure in the 32 villages recently merged into PMC limits remains inadequate, and the budget therefore includes provisions to upgrade roads, water supply systems and drainage infrastructure in these newly incorporated areas of Pune. This isn't a token allocation — it reflects years of resident complaints finally translating into line items.

Water supply gets one of the biggest pushes. Plans include new water infrastructure for areas such as Bavdhan, Sus-Mhalunge, Lohegaon and Wagholi, construction of five water tanks and a 35-km pipeline network in Bavdhan, and six tanks with a 77-km pipeline network in Sus-Mhalunge. Additional pipelines are proposed in Shewalwadi and Mundhwa–Keshavnagar. On the sewerage side, PMC plans to lay around 100 km of new sewer lines and undertake major maintenance of drainage systems and stormwater lines.

A dedicated AMRUT 2.0 push adds further muscle to the sewage overhaul. Projects under the AMRUT 2.0 scheme include sewer infrastructure in 23 newly merged villages and expansion of sewage treatment capacity with a project estimated at Rs 842.85 crore. Separately, PMC is also pursuing international funding for a much larger overhaul. The project includes 357 km of sewer networks covering seven villages, and proposes sewage treatment plants with capacities of 45 MLD at Manjari and 18.5 MLD at Holkarwadi. The civic body has allocated Rs 500 crore for its share of this project in the 2026-27 budget.

On the water front specifically, the numbers are substantial. The civic body has made a revenue provision of Rs 1,274.65 crore and a capital provision of Rs 2,077.43 crore for water supply-related works. The PMC has appointed a consultant to implement the common water supply scheme in 34 newly merged villages, with preliminary work already begun in areas such as Bavdhan, Sus-Mhalunge and Lohegaon-Wagholi, where new storage tanks and several kilometres of pipelines will be developed.

The scale of the challenge becomes clearer when you look at how much Pune has physically grown. The civic area expanded from 125 sq km in 1987 to 508 sq km in 2021, and several newly merged villages still lack adequate drinking water, sewage systems and storm-water drainage. Flood management is another priority area, with the PMC having identified nearly 300 flood-prone locations across 23 sub-catchments, proposing 103 km of drainage improvement work at an estimated cost of Rs 400 crore.

It's worth noting the process hasn't been entirely smooth. Earlier this month, reports emerged that the Pune Municipal Corporation had diverted Rs 24 crore allocated for the development of newly merged villages to an old city water supply project, raising concerns over delays in rural area development. Residents and some corporators have pushed back, arguing that funds shown on paper often don't translate into work on the ground. Opposition leaders have also questioned spending in some merged villages, noting that many localities in these villages continue to face severe drainage problems, with streams and drains overflowing with sewage water. This tension — big budget promises versus on-ground execution — is something prospective buyers in these areas should track closely over the next 12-18 months.

For homebuyers eyeing Pune's fringe belt — think Wagholi, Bavdhan, Sus-Mhalunge, Lohegaon and similar corridors — this budget matters more than it might first appear. Water and sewage connectivity directly affect property livability, resale value and even loan approvals in under-served pockets. Officials have indicated that water supply, sewage pipelines, and road development works in the merged villages are expected to be completed within the next two years, with the civic administration aiming to ensure equal water distribution across all areas of Pune within that timeframe. If execution keeps pace with the allocation, these fringe localities could see a meaningful uptick in both livability and long-term property demand.