Funding Boost: PMC to Receive ₹50 Crore for JICA STP Project

NRCD approved an immediate disbursement of ₹50 crore to the municipality, with an additional ₹50 crore scheduled for release soon.
JICA
JICAThe Bridge Chronicle
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Pune: Progress on Pune’s Mula-Mutha River Rejuvenation project is set to pick up pace as the central government recently committed to resolving financial delays affecting the project.

The project, funded under the Japan International Cooperation Agency (JICA), includes building 11 sewage treatment plants (STPs) to treat wastewater entering the Mula-Mutha River.

However, the project faced repeated delays due to funding lapses from both central and state governments, which slowed down work on-site, especially over the past year.

Over the past two years, Pune’s Municipal Corporation has been working on this project to address pollution in the Mula-Mutha River.

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Work on 10 of the STPs reached approximately 40% completion, but financial challenges due to delayed disbursements from the National River Conservation Directorate (NRCD) hindered the pace. Contractors faced challenges in paying wages, procuring raw materials, and maintaining equipment, affecting the progress.

The central government recently sanctioned ₹43.17 crore to the project; however, persistent funding delays have impacted the project's progress.

After a formal request from the Municipal Corporation, NRCD Director Ashok Babu convened a meeting with senior officials, including Municipal Commissioner, Additional Commissioner Prithviraj B.P., and Chief Engineer Prashant Waghmare.

During the meeting, the NRCD approved an immediate disbursement of ₹50 crore to the municipality, with an additional ₹50 crore scheduled for release soon.

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The NRCD also committed to coordinating with the state government to streamline the remaining fund transfers to prevent further delays.

The NRCD team praised the progress of the 10 ongoing STP projects and reaffirmed its support to keep the project on track.

Superintendent Engineer and Project Officer Jagdish Khanore expressed optimism about the project’s pace with the confirmed funding, noting that the NRCD’s timely intervention will sustain the momentum and enable project completion by March 2025.

JICA Project Overview:

Total estimated project cost: ₹1,173 crore

Funds received so far: ₹250 crore

Total expenses to date: ₹418 crore

Expected completion date: March 2025

Planned STP Sites

Naidu, Bhairoba, Dhanori, Kharadi, Warje, Vadgaon, Baner, Mundhwa, Wakdewadi, Matsyabeej Center

Proposed 2024 Quarterly Funding Breakdown (in crores):

  • April-June: ₹132.07 crore

  • July-September: ₹211.55 crore

  • October-December: ₹154.40 crore

  • January-March: ₹173.55 crore

  • Total: ₹671.58 crore

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