The first installment of viability gap funding (VGF) for the Pune Metro Line III project, amounting to Rs 4.1 billion, has been released by the Central government. This funding is part of the total VGF of Rs 12.248 billion allocated for the project, which is being constructed by a consortium of Tata and Siemens.

The Pune Metropolitan Region Development Authority (PMRDA) is overseeing the development of this 23.203 km-long elevated Metro line, connecting the prominent IT hub of Hinjewadi with the central business district of Shivajinagar. The project, estimated to cost Rs 83.13 billion, will feature 23 stations along the way, connecting key areas such as Baner Road, Balewadi, Aundh, and Pune University.

In 2018, the state government approved the project to be executed under a Public Private Partnership (PPP) model, based on a design, build, finance, operate, and transfer (DBFOT) framework, allowing for a 35-year concession period extendable by 25 years.

Following this approval, in September 2019, a consortium comprising TRIL Urban Transport (a unit of Tata Realty and Infrastructure) and Siemens Project Ventures GmbH was awarded the project. This consortium, the sole bidder, established a special purpose vehicle named Pune IT City Metro Rail (PITCMRL) to carry out the project.

Of the total VGF sought by the Tata-Siemens consortium, the Central government will contribute Rs 12.248 billion as a grant, while the remaining Rs 11.262 billion will be funded by the Maharashtra government.

Construction work commenced in December 2021, and the project is slated for completion within 40 months, with operational readiness expected by March 2025.