Pune Metro is leveraging property assets to fund its expansion, allocating 9.7 hectares of land to Tata Group along a new 23 km elevated Metro line. This land allocation offers real estate development opportunities, with a portion already assigned to Pune IT City Metro Rail Limited. Real estate developers see potential for upscale properties along all three Metro lines, encouraged by increased Floor Space Index (FSI) and transit-oriented development. The Metro aims to significantly reduce commuting times, completing its journey in under 40 minutes. Delays have pushed the project's operational start to March 2025.
The Pune Metro project has turned to an innovative source of funding by auctioning off an eight-acre government-owned dairy farm near the Old Pune-Mumbai highway. This move replaced a direct financial assistance offer of Rs 1,200 crore from the state government. Initially designated for government purposes like a polytechnic institute and dairy development, the land was put up for e-auction, with hopes of raising over Rs 500 crore. The state government had contributed a total of 53.94 acres of land for the metro project, with an estimated cost of Rs 8,312 crore for the route from Hinjewadi to Shivajinagar.
Currently, the Pune Metropolitan Region Development Authority (PMRDA) plans to allocate 9.7 hectares of land to the Tata Group as part of their strategy to create non-fare income for the 23km elevated third Metro line running between Hinjewadi and Shivajinagar.
According to Rinaj Pathan, the chief engineer of PMRDA, a portion of the 9.7-hectare land allocation, specifically 4.75 hectares, has already been transferred to the concessionaire in Balewadi. An additional 5 hectares in Maan will be assigned shortly. The entity with the concession, operating as Pune IT City Metro Rail Limited, has the freedom to employ this land for real estate projects, mirroring the approach taken with the city's prior two Metro lines.
A senior PMRDA official pointed out that this land presents an attractive investment opportunity for real estate developers due to its proximity to the elevated Metro line.
Real estate developers have expressed optimism about the impact of this development on the construction sector along the Metro routes. Anticipated outcomes include the construction of tall buildings and upscale properties along all three Metro lines. Developers are expected to benefit from increased Floor Space Index (FSI) for projects situated along the Metro route, which aligns with the Metro's objectives.
To fund the Pune Metro, the government initiated a 1% property cess on property purchase stamp duty, effective from April 1. In addition to non-fare revenue, the plans for the Metro lines include transit-oriented development, property business spaces within stations, property development on standalone plots, and co-branding rights for Metro stations.
The Metro service will complete the 23.3 km journey from Mann metro depot through Hinjewadi Park to Civil Court in Shivajinagar in under 40 minutes, a significant improvement over the current road commute that takes over an hour. Along its route, Metro Line 3 will encompass 23 stations, linking key areas such as Baner Road, Balewadi, Aundh, and Pune University.
The project contract, originally inked on September 21, 2019, aimed to initiate operations by March 2023. Nevertheless, owing to land acquisition delays, the entity responsible for project execution was only appointed on November 25, 2021. Consequently, the new target for project finalization and commencement of operations is March 2025.
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