The Maharashtra government will spend an additional Rs. 105.02 bn on the Pune Ring Road after taking over a key stretch that the National Highways Authority of India (NHAI) did not prioritise. The state has assigned land acquisition and construction for the stretch to the Maharashtra State Road Development Corporation (MSRDC), taking the project’s total cost to Rs. 53.21 bn.

The Cabinet sub-committee on infrastructure approved the revised administrative sanction for civil works and land acquisition on 18 August. The state had approved a cost escalation of Rs. 203.75 bn in 2024, which raised the project outlay to Rs. 42.71 bn before the latest revision.

The Pune Ring Road has two arms, eastern and western, intended to reduce congestion in Pune and surrounding areas. The estimated cost of the eastern stretch increased from Rs. 101.6 bn in 2021 to Rs. 199.33 bn in 2024, while the western stretch rose from Rs. 121.76 bn to Rs. 227.78 bn during the same period.

The latest expenditure comes as Maharashtra’s outstanding debt is projected to reach Rs. 11.02 tn in 2026-27. The state has also estimated a revenue deficit of Rs. 405.52 bn and a fiscal deficit of Rs. 1.5 tn, equivalent to 2.8 per cent of gross state domestic product.

The government is simultaneously funding the Majhi Ladki Bahin scheme, a farm loan waiver and drought relief of Rs. 5,000 per farmer across 304 tehsils. The revised sanction places responsibility for the affected ring road stretch with MSRDC while retaining the configuration approved by the central government through NHAI.