Pune: The Maharashtra State Road Development Corporation (MSRDC) has approved a plan to implement a toll collection system for 40 years as part of the Pune Ring Road project.

The project, designed to reduce traffic congestion in Pune and Pimpri-Chinchwad, will be executed under the Design, Build, Finance, Operate, and Transfer (DBFOT) model. Two separate companies will oversee the construction of the Eastern and Western Ring Roads under MSRDC’s supervision.

The state government recently granted approval for the revised administrative, financial framework, and concession agreement for the project, which has been divided into two segments: the Eastern Ring Road (stretching from Urse in Maval Taluka to Soratpwadi on Pune-Solapur Road) and the Western Ring Road (from Urse in Maval Taluka to Warve Budruk on Satara Road).

Orders regarding these developments were issued by the Deputy Secretary of the Public Works Department, Rahul Giribuva.

MSRDC had previously invited tenders for the construction of the project, but the bids received were higher than the initial estimates. Despite objections from the finance department, which suggested canceling and restarting the tender process, the government approved the revised higher rates.

Consequently, the project cost has escalated from the originally estimated ₹20,335 crore to ₹42,711 crore. This increased cost will be recouped through toll collection from the public over the next four decades.

Land acquisition efforts for the project are ongoing. The state government has stipulated that 70% of the required land must be acquired before the contractor is issued an acceptance letter and 90% before work can commence.

A three-tier committee consisting of the Additional Chief Secretaries of the Public Works, Finance, and Planning departments will review the project’s toll collection and loan repayment every three years.

The state government will retain rights over toll collection revenue until MSRDC’s financial obligations for the project are fulfilled.