Maharashtra Government approves ₹180 crore for Pune Metro Expansion Projects

Pune, India (Rail & Metro Today): The Maharashtra government has approved ₹180 crore in fresh funding for three Pune Metro expansion corridors during the 2026–27 financial year, providing additional financial support for the ongoing expansion of the city’s mass rapid transit network.

The funding includes ₹100 crore in equity and ₹80 crore as an interest-free subordinate loan for the Swargate–Katraj Metro corridor, while the Vanaz–Chandni Chowk and Ramwadi–Wagholi/Vitthalwadi extensions will receive ₹20 crore as a state equity contribution.

The Maharashtra Urban Development Department issued directives regarding the funding on September 18, 2026.

₹180 Crore Support for Three Metro Extensions

The Swargate–Katraj corridor is being implemented by Maharashtra Metro Rail Corporation Limited (Maha-Metro) as a fully underground extension. The project has an approved cost of ₹2,954.75 crore, with the Maharashtra government committed to providing ₹397.83 crore as its equity contribution.

The latest release of ₹100 crore takes the total state equity released for the project to ₹200 crore. Previous equity releases included ₹60 crore in August 2025 and ₹40 crore in December 2025.

The state government has also approved an ₹80 crore interest-free subordinate loan for the Swargate–Katraj project. The total subordinate loan sanctioned for the corridor now stands at ₹322.10 crore, while the cumulative amount disbursed will reach ₹160 crore following the latest release.

According to the government order, the subordinate loan will be repaid in a single instalment after repayment of the principal loan taken for the project. The loan is currently interest-free. If interest becomes applicable in the future, Maha-Metro will be required to repay the amount along with the applicable interest.

Vanaz–Chandni Chowk and Ramwadi–Wagholi Extensions

A separate government resolution provides financial support for the extensions of the existing Vanaz–Ramwadi Metro corridor.

The package covers Vanaz–Chandni Chowk Corridor 2A and Ramwadi–Wagholi/Vitthalwadi Corridor 2B. Together, the extensions cover approximately 12.75 km and 13 stations, providing additional connectivity towards Chandni Chowk, Kothrud, Kharadi and Wagholi.

The combined revised approved project cost stands at ₹3,626.24 crore, while the state government has committed ₹479.71 crore as its equity contribution.

The latest government decision approves ₹20 crore from the 2026–27 state budget as equity contribution towards the two extensions. With this release, cumulative state equity disbursement for the projects will increase to ₹80 crore. The state had previously released ₹60 crore on June 19, 2026.

Funding to Support Priority Metro Works

Maha-Metro officials have indicated that project funds are released in phases and will be utilised for priority works aimed at extending Metro connectivity to more areas of Pune and Pimpri-Chinchwad.

The latest financial support comes as Pune Metro continues to expand beyond its existing corridors. The Swargate–Katraj extension will provide an underground connection towards the southern parts of the city, while the Vanaz–Chandni Chowk and Ramwadi–Wagholi/Vitthalwadi extensions will strengthen connectivity towards western and eastern growth areas.

The government resolutions also require Maha-Metro to maintain separate accounts for funds received from the Central Government, Maharashtra Government and Pune Municipal Corporation.

Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said, “Consistent and structured funding is critical for maintaining momentum on metro expansion projects, particularly where underground construction and major urban interfaces are involved. The latest allocation for Pune’s Metro extensions will support priority works and help strengthen connectivity between established urban areas and rapidly developing residential and employment centres.”

The latest approvals represent another tranche of state financial support for Pune’s expanding Metro network. Continued funding, timely execution and integration with other modes of public transport will remain important as the city develops its next phase of mass transit infrastructure.