The Maharashtra government has approved an interest-free subordinate loan of ₹40 crore for the extension of Pune Metro Phase 1. The funding aims to accelerate construction work on 2 important metro corridors that will improve connectivity across Pune.
The approval was granted through a government resolution issued by the Urban Development Department on June 19, 2026. The funds will be provided to the Maharashtra Metro Rail Corporation Limited (Maha-Metro) during the financial year 2026-27.
The sanctioned funds will support the development of 2 elevated metro corridors under the Phase 1 extension project:
Together, these extensions are expected to strengthen Pune's metro network and provide better transportation access to residents in both western and eastern parts of the city.
The revised cost of the metro extension project stands at ₹3,626.24 crore. The project received approval from the Central Government in July 2025, followed by approval from the Maharashtra Government for the revised financial structure in August 2025.
The latest ₹40 crore allocation forms part of the state's contribution towards the overall project funding.
According to the government order, the ₹40 crore will be released from the state budget under the Urban Development Department and transferred directly to Maha-Metro without any conditions attached.
The government has also clarified that the loan amount will be recovered in a single instalment after Maha-Metro repays its primary loans obtained from external funding agencies for the project.
To ensure transparency and proper monitoring of funds, Maha-Metro has been instructed to maintain separate accounts for the amount received. The corporation will also be required to submit regular expenditure reports to both the state and central governments.
These measures are intended to ensure proper utilisation of public funds and effective project execution.
According to Maha-Metro officials, the metro extension project is expected to be completed over a period of 4 years. The state government plans to release its share of funding annually as the project progresses.
Maha-Metro Director (Works) Atul Gadgil stated that construction activity has already begun on the Vanaz-Chandani Chowk section of the extension project.
Once completed, the metro extensions are expected to significantly improve urban mobility by connecting Chandani Chowk and Wagholi to Pune's existing metro network. The project is likely to reduce travel time, ease road congestion, and provide residents with a faster and more convenient mode of public transportation.
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The Maharashtra government's approval of a ₹40 crore interest-free loan marks another step forward in the expansion of Pune Metro. With work already underway and funding support being provided in phases, the project is expected to enhance connectivity across key parts of Pune and strengthen the city's public transport infrastructure over the coming years.
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Published on: Jun 22, 2026, 6:35 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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