PMC plans Rs 2,600-crore urban transportation fund

The Pune Municipal Corporation (PMC) is exploring the possibility of setting up a Rs 2,600-crore “urban transportation fund” (UTF) to boost its efforts in executing a better public transport system in the city. Making a presentation on Pune’s vision to elected members at a meeting, municipal commissioner Pravinsinh Pardeshi suggested various means, other than taxation, to raise funds. He said funds could be raised through cess on commercial vehicles entering Pune, sale of additional FSI, equity in special purpose vehicle, viability gap funding, commercial development of amenity spaces, revenue share from public private partnership (PPP) projects and contribution from annual operating surplus of municipal fund. A good public transport system is the need of the hour as 600 new vehicles hit the city’s roads every day, adding to the traffic congestion and pollution. The number of personal vehicles, cars and two-wheelers, have already crossed 17 lakh in the absence of a strong public transport network. Pardeshi said the objectives of the National Urban Transport Policy can be achieved in Pune only by emphasising on public transport and non-motorised transport (NMT). Public transport includes setting up of a set of metro lines, integrated water transport and BRTS (Bus Rapid Transit System). The NMT includes setting up of a bicycle network, he said. “The broad implementation framework is to execute the major transportation infrastructure and public transport system projects through special purpose vehicle (SPV). There would be one main SPV called the Pune Infrastructure Development Corporation (PIDC), which will undertake the projects in an accelerated mode,” Pardeshi said. The civic chief explained that the financing plan to enable execution of these projects is to create an ‘urban transportation fund’ (UTF), which will be managed by the main SPV. While one of the major projects to be implemented under SPV and through the UTF is the metro rail project, Pardeshi said approval has been sought from government for metro fundraising decisions, which includes increase in FSI up to 3 in areas around the proposed metro stations. “Accrual from sale of additional FSI of 3 per cent for metro and FSI of 2 per cent for areas around BRTS is estimated to be Rs 2,305 crore. An amendment to the Development Control rules will be required to generate funds through this method,” he said. Similarly, permission will be sought from the government to allot selected amenity spaces to SPV. “In all, 84 spots for amenities measuring around 2.87 lakh square metres have been identified for developing on a commercial basis. The appreciation from development of these places is estimated at Rs 574 crore, which will be used in UTF,” Pardeshi said.