Pune: The Maharashtra State Road Development Corporation (MSRDC) is set to establish an independent company named ‘MSRDC Pune Ring Road Limited’ (MPRRL) to manage the development of the Pune Ring Road project under the DBFOT (Design, Build, Finance, Operate, and Transfer) model.

This company will oversee the construction and eventual operation of the eastern and western sections of the ring road.

According to an order issued by Additional Secretary of the State Government's Public Works Department, Rahul Giribuwa, toll collection for the ring road will be managed by MSRDC for the next forty years following the completion of the road.

The process of awarding contracts to construction companies will only proceed once 90% of the necessary land acquisition for both sections is complete.

While the state government recently ordered the shutdown of toll booths in Mumbai, the decision to allow toll collection on the Pune Ring Road has raised eyebrows. The MSRDC’s authority to collect tolls contrasts with the government's earlier stance on tolling.

The ring road project is being executed in two parts: east and west. The MSRDC had earlier invited tenders for the work, but the bids received were significantly higher than the preliminary estimates.

This led the state finance department to express concerns and recommend canceling these tenders in favor of initiating a new process. However, the state government approved the higher bids despite the objections.

The initial estimated cost of the project was ₹20,335 crore, but with the revised tenders, the cost has now escalated to ₹42,711 crore. The state government plans to recover this increased expenditure through toll collection from the public, making it clear that citizens will bear the burden of the rising costs.