The Maharashtra cabinet has recently greenlit a significant cost escalation of Rs 20,375.21 crore for the Pune ring road project, pushing the total project cost to Rs 42,711.03 crore. This increase comes just three years after the initial project estimation, despite construction yet to commence.
Details of the Pune Ring Road Project
According to the cabinet’s notes, the Pune ring road (east) is planned to extend from Urse (on the Mumbai-Pune Expressway) to Solu (along the Alandi-Markal road), and further from Solu to Sortapwadi (on the Pune-Solapur road). The length of this section was initially estimated at 68.19 km, with a cost of Rs 10,159.82 crore in September 2021. Following the recent cabinet meeting, the total length has been revised to 72.335 km, leading to a new estimated cost of Rs 19,932.98 crore.
The Pune ring road (west) segment will connect Urse (Mumbai-Pune Expressway) to Varve Budruk (on the Satara road). Initially pegged at Rs 12,176 crore in September 2021, this section’s cost has now surged to Rs 22,778.05 crore.
Anilkumar Gaikwad, Vice-President and Managing Director of the Maharashtra State Road Development Corporation (MSRDC) provided insights into the factors contributing to this escalation. He noted that the revised costs are due to the incorporation of advanced technologies and modifications to project specifications.
“The project estimates were based on 2017-18 rates. The tenders were filed with ongoing rates, reflecting the increase in material prices,” Gaikwad stated. He added that the tendering process follows an engineering, procurement, and construction basis, which may lead to changes in both the base levels and the project’s overall length. Additional costs arising from land acquisition for minor minerals and the development of temporary approach roads are also expected, with the contractor bearing responsibility for these aspects.