In a recent development, the Maharashtra cabinet has sanctioned a significant cost escalation for the Pune ring road project, raising the total expenditure by Rs 20,375.21 crore. The revised total project cost now stands at Rs 42,711.03 crore. Notably, this approval comes even though construction is yet to commence, just three years after the initial cost estimation.
Overview of the Pune Ring Road Project
The Pune ring road project is divided into two main sections—east and west:
- Pune Ring Road (East)
- Initially estimated at a length of 68.19 km and a cost of Rs 10,159.82 crore in September 2021, the east section’s revised length is now 72.335 km.
- The updated project cost for this section has surged to Rs 19,932.98 crore.
- The road will stretch from Urse (on the Mumbai-Pune Expressway) to Solu (along the Alandi-Markal road), continuing to Sortapwadi (on the Pune-Solapur road).
- Pune Ring Road (West)
- This segment connects Urse (Mumbai-Pune Expressway) to Varve Budruk (on the Satara road).
- Initially projected to cost Rs 12,176 crore, the revised estimate for the west section now stands at Rs 22,778.05 crore.
Reasons for Cost Escalation
Anilkumar Gaikwad, Vice-President and Managing Director of the Maharashtra State Road Development Corporation (MSRDC), provided insights into the factors driving this significant cost increase. He highlighted the following:
- The original cost estimates were based on 2017-18 rates.
- Escalations are due to rising material prices and changes in project specifications.
- The tendering process uses an engineering, procurement, and construction (EPC) model, which can lead to adjustments in project length and base levels.
- Additional costs have been incurred due to land acquisition, particularly for minor minerals, and the construction of temporary approach roads. The contractor will be responsible for managing these aspects.
Future Outlook
With this latest development, the Pune ring road project has entered a crucial phase where the revised costs will significantly impact its execution. Despite delays in construction, the integration of advanced technologies and a larger scope aim to enhance the overall infrastructure in Pune, promising improved connectivity and reduced travel time once completed.