The Maharashtra state government has approved an interest-free loan of ₹40 crore to expedite the extension works of Pune Metro phase 1 between Vanaz-Chandani Chowk and Ramwadi-Wagholi (Vitthalwadi).
According to a government resolution (GR) issued by the urban development department (UDD) on Friday, June 19, the funds will be provided to the Maharashtra Metro Rail Corporation Limited (Maha-Metro) as an interest-free subordinate loan during the financial year 2026-27 for the two elevated metro corridors.
These include the 1.12 km Vanaz to Chandani Chowk corridor (metro line 2A) and the 11.63 km Ramwadi to Wagholi (Vitthalwadi) corridor (metro line 2B). The combined project, with a revised cost of ₹3,626.24 crore, had received approval from the union government in July 2025, followed by the state government’s approval of the revised financial plan in August 2025.
The newly sanctioned ₹40 crore will be released from the state budget under the urban development head and transferred to Maha-Metro without any conditions. The state government has clarified that the amount will be recovered in a single instalment after Maha-Metro repays the primary loans taken from external funding agencies for the project.
The government has also directed Maha-Metro to maintain separate accounts for the funds received and submit regular expenditure details to both the state and central governments. The extension of the two corridors is expected to significantly improve connectivity in the western and eastern parts of Pune by linking Chandani Chowk and Wagholi to the existing Pune Metro network.
Atul Gadgil, director (works), Maha-Metro, said, “It’s a four-year project. The state is releasing its share annually to Maha-Metro. At present, Pune Metro has started work on Vanaz-Chandani Chowk.”
