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Are Indian Cities Budgeting Enough for Sustainable Transport? The Tale of Pune and Pimpri Chinchwad

26th February 2025 by admin

(Part 2 of Municipal Budget Analysis Series)


As cities across India gear up to draft their 2025-26 municipal budgets, the question looms: How well are they prioritising sustainable transport this time around? A good way to determine this is by analysing the municipal budget documents published yearly. This is an important exercise, after all, budgets don’t just outline the finances of the city but also reflect their vision. 

In this context, we delve into the findings from a municipal budget analysis of Pimpri Chinchwad Municipal Corporation (PCMC) and Pune Municipal Corporation (PMC). While our previous blog focused on PCMC, this one also highlights Pune, posing a key question: How do these twin conjoined cities which share mobility services like the metro, Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) bus system, and interconnect streets, allocate municipal budget to sustainable transport initiatives? 

Budgetary Overview of Pune and Pimpri Chinchwad: Neighbouring Cities with Divergent Approaches 

To understand how Pune and PCMC prioritise sustainable transport, it is essential to consider their population, size, and 2024-25 budget allocations. 

Pune, a tier-1 city with 44 lakh Population (Projected for 2024) and 518 sq. km of area, contrasts with Pimpri Chinchwad, a tier-2 city with a population of 25 lakh (Projected for 2024) and one-third the size of Pune. The table below highlights their budget allocations. 

Key Highlights from Pune and Pimpri Chinchwad’s Budgets (2024-25) 

The team meticulously examined the city’s annual budgets for the past three years, scrutinising each line item related to transport and categorising them into ‘sustainable and non-sustainable modes’ of transport. Sustainable modes include projects that encourage walk, cycle, and use of public transport. Non-sustainable modes include items which encourage use of private motor vehicles and prioritise private vehicle movement over other sustainable modes. 

IndicesPunePimpri Chinchwad
Total Budget₹11,601 crore ₹8,676 crore 
Total Transport budget allocation₹2,320 crores (20% of total budget) ₹1,475 crore (17% of total budget) 
Total Sustainable transport budget:  ₹918 crores (~40% of the transport allocations)  ₹818 crores (~55% of the transport allocations) 
Allocations for non-motorised transport ₹351 crores (15% of the transport allocations) ₹459 crores (31% of the transport allocations) 
Allocations for Public transport (Buses and infra) ₹567 crore (24% of the transport allocations) ₹359 crore (24% of the transport allocations) 
2024-25 Budget Highlights

What were the key observations?

The analysis of budgetary allocations reveals contrasting approaches toward urban transport priorities, offering valuable lessons for other cities. 

1. Pune and Pimpri Chinchwad’s allocation for sustainable transport see slight differences  

In 2024-25, PMC and PCMC allocated significant portions of their municipal budgets to transport—₹2,320 crore (20% of total budget) for PMC and ₹1,475 crore (17% of total budget) for PCMC.  

Over the past three years, both cities have consistently spent about 16%-20% of their total budgets on transport initiatives. 

While Pune’s transport budget grew by 40% compared to last year and Pimpri Chinchwad’s by 31%, how they allocated these budgets tells a different story. 

Chart showing the annual trend of the percentage of transport budget allocated under the total municipal budget.

While PMC allocated a higher absolute amount for sustainable transport (₹918 crore vs. ₹818 crore for PCMC), a closer look at the percentage reflects a different reality. Sustainable transport makes up only 40% of Pune’s transport budget, whereas Pimpri Chinchwad allocated 55.5% of its transport budget to sustainable initiatives. 

Chart showing the annual trend of the percentage of transport budget allocated to ‘sustainable mobility’ initiatives by Pune and Pimpri Chinchwad

2. The curious case of missing allocations for cycle tracks in Pune 

The budgets for Non-Motorised Transport (NMT) infrastructure, which includes building footpaths and cycle tracks, were a mixed bag for Pune in 2024.  

The city allocated ₹351 crore for NMT (15% of its overall transport budget). However, what is concerning is that there is no dedicated fund allocated for cycle tracks.  


This is surprising, given that since 2018, Pune has had a dedicated budgetary allocation for building cycle tracks in alignment with the Pune Bicycle Plan (2017), which set an ambitious goal of increasing cycling’s modal share from 3% in 2017 to 25% by 2031. At one stage, PMC allocated ₹75 crore in 2018-19 to gradually declining it to ₹3.3 crore 2023-24. However, this year, there was no dedicated fund towards this. Pune has projects like ‘Pune Streets Program (PSP) which gets dedicated funding every year through which city can develop footpaths and cycle tracks.  

Glimpses of Pune’s vibrant cycling culture. With no sustained and dedicated investment, this community is at risk

In comparison, Pune’s transport budget in 2024 saw a sizeable amount to build more flyovers! ₹93.5 crore is allocated for grade separators, including flyovers, in Pune budget. This marks a concerning trend as flyover are known to only offer temporary relief from congestion. 

On the other hand, Pimpri Chinchwad has adopted a more balanced approach, allocating 31% of its overall transport budget for NMT. They allocated ₹459.4 crore in 2024-25 for NMT. This accounts for 31.1% of Pimpri Chinchwad’s overall transport budget—double Pune’s share for NMT.  

PCMC has projects like the ‘Urban Streetscapes’ and the ‘Harit Setu’ program which gets dedicated funding every year through which city develops footpaths and cycle tracks. 

In terms of funds for flyover, PCMC has dedicated ₹27.7 crore to flyovers in 2024-25 budgets, which as mentioned above only offers temporary relief from congestion. 

3. Both cities commit VGF for PMPML, but not so committed to allocating for new buses 

In the 2024-25 municipal budget, Pune allocated ₹567 crore, (24% of the transport allocations) towards PMPML bus services while Pimpri Chinchwad allocated ₹358.6 crore (24.3% of transport allocations).  This is the overall allocations for public transport; however, a closer look shows that the majority of this went towards Viability Gap Funding (VGF). 

VGF is a specific component given by both cities to PMPML to operate buses and cover PMPML’s operational costs. As agreed by the cities, this VGF is distributed in specific proportions, with PMC covering 60% of the amount sought by PMPML, and PCMC contributing the remaining 40%. 

PMPMPL needs funds beyond VGF to procure new buses

In this context, Pune allocated ₹536.43 crore of the ₹567 crore in 2024-25 as VGF for PMPML. Pimpri Chinchwad provided ₹290.4 crore out of the ₹358.6 crore in 2024-25 as VGF for PMPML. These budget allocations are to keep the service afloat for day-to-day operations.  

However, the budget allocation for new buses and improvement of the Rainbow Bus Rapid Transport (BRT) infrastructure, while critical, is negligible.   

PMC set aside just ₹58 lakh while PCMC allocated ₹4.27 crore towards the BRT service improvement and infrastructure.  

4. Both cities dip into central funds  

Beyond municipal budgets, central and state schemes significantly shape urban mobility. 

Both cities maintain separate lists for central and state funds, such as NCAP, AMRUT, and JNNURM. Pune allocated ₹103 crore under NCAP for sustainable mobility, including ₹38 crore for NMT-friendly streets. Pimpri Chinchwad on the other hand, allocated ₹77 crore under NCAP for sustainable mobility, with ₹23 crore for NMT-friendly streets. 

Under the 15th finance commission, both the cities have tapped into national funds. Through these funds, Pune allocated ₹25 crore for last-mile metro connectivity, ₹30 crore for e-bus procurement, and ₹10 crore for six e-bus depots. Pimpri Chinchwad, allocated ₹42 crore for last-mile metro connectivity and ₹12 crore for EV charging stations.  

PCMC took a more integrated budgeting approach for transport related projects, allocating ₹262.5 crore through the Urban Transport Fund (UTF). Of this, 48% was dedicated for NMT and public transport, with the rest for carriageway, and bridges etc. 

With its newly formed Urban Mobility Department, PCMC plans to increase UTF allocations for sustainable transport in 2025-26, reflecting a stronger on sustainable mobility and integration. PMC has had no such dedicated UTF budgets. 

 In a Nutshell

Overall, it is evident that Pune, despite a larger allocation for transport than in the previous years in terms of absolute numbers, was not successful in improving their percentage share for sustainable transport.  

PCMC is steadily increasing its investment in sustainable transport, a positive trend that must continue to meet its NMT and public transport goals. Meanwhile, Pune must significantly boost its allocations to reverse its declining trajectory and stay on track with its mobility vision. 

Six key lessons for other cities when developing ‘Annual Municipal Transport Budget’ documents and strategies 

The analysis of Pune and Pimpri Chinchwad’s transport budgets reveals critical best practices that other cities can adopt to create effective, transparent, and sustainable urban mobility strategies. Here are six actionable takeaways: 

  1. Uniform format and transparency:  Municipal budgets should follow a consistent, detailed format to track trends and enable comparative analysis. Both Pune and PCMC use uniform budget templates annually, making it easier to track allocations. They also stand out as cities that publish budget documents online each year in local/regional languages. 
  2. Follow a detailed template consistently: Cities should use detailed templates for project-wise budget allocations instead of lump sums. This improves transparency by listing total project costs, yearly allocations, and expenditures, ensuring accountability. Both Pune and Pimpri Chinchwad follow project-based budgeting. Pune traditionally allocates funds under initiatives like road safety, pedestrian policy, and bicycle tracks, while Pimpri Chinchwad focuses on programmes like Harit Setu, Urban Streetscapes, and the Parking Policy.  
  3. Align transport budgets with city goals: Municipal budgets allocations should reflect/align with the transport goals identified in the city’s plans and policies. Regular sustainable transport budget analysis help identify shortcomings, while providing opportunities for course corrections. 
  4. Ensure a diverse revenue streams: Cities should diversify revenue sources, including land value capture, revenue from parking management, international sources, and even municipal bonds, if possible, to reduce reliance on state or central allocations. This ensures consistent funding for transport projects boosting the municipal allocations. Both cities are looking at Municipal bonds for funding mobility projects. PCMC has also participated in national and international competitions for fetching additional funding.  
  5. Create dedicated budget heads for priority projects: Cities should establish dedicated budget heads for priority sustainable transport projects, like implementing footpaths, junction improvement, bus augmentation, bus infra upgradation, etc. Part of the allocation should be for implementation of policies and plans, research, capacity development of staff, road safety initiatives, etc. Each project should have a clear line item in the budget. This approach ensures targeted and continuous funding and ensures accountability. 

The budget analysis of Pune and Pimpri Chinchwad tells a clear story that while these twin cities share mobility networks, their financial commitments to sustainable transport differ significantly. This will eventually reflect in the way they set out to achieve their sustainable transport goals. 
 
As cities across India prepare their 2025-26 municipal budgets, ensuring a consistent and transparent approach to transport funding will be key to creating accessible, efficient, and sustainable urban mobility. After all, where cities put their money today will shape how people move tomorrow. 

Written by Pranjal Kulkarni, Programme Manager- Healthy Streets and Compact Cities, Rutuja Nivate, Associate, Urban Development, and Siddhartha Godbole, Senior Associate- Urban Development

Edited by Donita Jose, Senior Associate Communications

Filed Under: Low Emission Zones, sustainable-transport-magazine, Transportation budget Tagged With: Electric bus, electric mobility, India, Maharashtra, Municipal Budget, Parking, Pimpri chinchwad, Public Transport, Pune, Sustainable Transport, Sustainable Transport Policy

Are Indian Cities Budgeting Enough for Sustainable Transport? A Case from Pimpri Chinchwad

20th November 2024 by admin

(Part 1 of Municipal Budget Analysis Series)


Annual municipal budgets shape how the city’s resources- the taxpayers’ money- are allocated to shape the city and in turn serve its residents. However, the question arises: do the city’s annual budgets reflect investments in mobility for cleaner air and congestion-free streets, which have been challenging for most cities? Such budget allocations are even more critical for rapidly urbanising Indian cities. 

Pimpri Chinchwad is one of India’s fastest-growing tier-2 cities. Through its ambitious policies, plans, and projects, Pimpri Chinchwad has been actively striving to build a robust sustainable urban mobility system in the city.  Pimpri Chinchwad Municipal Corporation’s (PCMC) bold policies, including the Non-Motorised Transport Policy (2021) and Pune Metropolitan Region’s Comprehensive Mobility Plan (2018), aim for 90% of trips to be made by walking, cycling, or public transport by 2036. PCMC also aims to reduce private vehicle trips by 18%, focusing on a fair distribution of road space between all users and a shift towards sustainable urban transport modes such as walking, cycling, and public transport. However, as per Parivahan data, with nearly 90 vehicles per 100 residents, congestion, road safety, and air quality remain major challenges.  

PCMC is well aware of this alarming figure and is making every effort to address it. With the further expansions of the existing 54 km of Bus Rapid Transit and the 7 km of Metro, along with 16 km of suburban rail, and more than 100+ km of redesigned healthy streets, the city is reshaping how people move.  

While in the last decade, the city has made strides with its sustainable transport initiatives, how can we ensure it remains committed to creating safer streets, reducing congestion and improving air quality? 

One key indicator of the city’s commitment to its sustainable transport goals is how much allocation of the municipal funds goes to various transport modes, especially the sustainable ones – walking, cycling, and public transport.  

PCMC collaborated with ITDP India to analyse the city’s annual budget allocations from 2022-23 to 2024-25 (across a period of three years) focusing on mobility projects in the city. In June 2024, ITDP launched the ‘PCMC Municipal Budget Analysis Report’ capturing the insights from this research project. 


Why was the study conducted?

The study was conducted to gain a nuanced understanding of historical budget allocation trends, assess current allocation patterns, and identify gaps and opportunities for future provisions towards urban mobility. It aimed to establish a detailed report of funding requirements through projections and provide informed recommendations to enhance the upcoming annual mobility budget allocations. Additionally, this study was undertaken in response to the lack of such detailed case studies in India, highlighting the need for more structured approaches to urban mobility budgeting and planning. 

How did we do it?

The team meticulously examined the city’s annual budgets for the past three years, scrutinising each line item related to transport and categorising them into ‘sustainable and non-sustainable modes’ of transport. Sustainable modes include projects that encourage walk, cycle, and use of public transport. Non-sustainable modes include items which encourage use of private motor vehicles and prioritise private vehicle movement over other sustainable modes. 

What were the key observations?

1. Transport allocations inching towards its sustainable transport goals 

With a total municipal budget of ₹8,676 crore, PCMC has one of the highest per capita budgets allocated in the state. In 2024-25, 17% (₹1475.4 crore) of the annual budget was allocated to transport– an increase in proportion to the overall increase in municipal budget as compared to the previous year. Additionally, over half of the current transport budget is now allocated to sustainable transport infrastructure, up from 48% (₹540 crore) to 56% (₹818 crore) as compared to the previous year. 

Graph showing an upward trend in PCMC’s annual transport allocations, along with the sustainable and non-sustainable allocation split 

2. Significant increase in allocation towards walking-cycling infrastructure 

The non-motorised transport (NMT) budget allocation of ₹439.7 crore accounts for more than half of the sustainable transport budget and one-third of the entire transport budget! As compared to the previous years, the city has more than doubled its allocation towards NMT from ₹217.9 crore in 2023-24 to ₹439.7 crore in 2024-25 which is a move in right direction. This shift is mainly due to the allocations for the ambitious ‘Harit Setu’ project that aims to make PCMC a 15-minute walking-cycling neighbourhood city and ‘Urban Streetscapes Programme’ (USP). In addition, this also includes allocations for initiatives like cycle sharing systems, parking management, and maintenance of infrastructure. 

Sankey graph showing the detailed transport allocations for the year 2024-25

However, PCMC needs to allocate a similar amount consistently every year towards creation of footpaths and cycle tracks to achieve the goal of 90% of all trips by sustainable modes by 2036. This budget will support the transformation of 25 km of major streets and 100 km of minor streets each year. Only by maintaining this aggressive pace, can PCMC systematically transform its streets over time and move closer to achieving the NMT Policy’s targets. 

3. Need for more investment in public transport 

While there have been significant efforts to improve walking and cycling, there is a gap in funding for more public buses. There is still a need to make buses more accessible to everyone. The city funds its public bus system by providing Viability Gap Funding (VGF) to the city’s transport undertaking – Pune Mahanagar Parivahan Mahamandal Ltd (PMPML). However, the city’s budget allocation for buses has seen a slower increase, rising from ₹231 crore in 2022-23 to ₹359 crore in 2024-25 for buses over the four years. According to PMPML’s Vision 2027, the city currently has around 26 buses per lakh population, which is half of the national guideline of 60 buses per lakh population and an exponential increase is needed to meet these goals. In addition to the operational expenditures, PCMC needs to allocate an estimated ₹730 crore annually to achieve target bus fleet of 2850 size (as per the recommended MoHUA standards) by 2030. 

Comparative chart showing the non-sustainable and public transport allocation trends 

4. Car-centric investments still dominate the budget 

As one of the fastest-growing cities, Pimpri Chinchwad has also prioritised the development of new streets to ensure connections to the new villages. As a result, the private motor-vehicle-centric road expenditure is reasonably high. It is critical for such cities to ensure this new development is equitable and caters to the needs of pedestrians, cyclists, and public transport. The allocation of budget for car-centric infrastructure, such as flyovers and multi-level car parks, is consistently high. At ₹657 crore, PCMC is allocating twice as much for non-sustainable transport than that for public transport. Surprisingly, some programs, like Sustainable Urban Transport Projects (SUTP) and Urban Transport Funds (UTF), earmarked for sustainable development have budgetary provisions for car-centric projects. A 100% of the ₹4.5 crore under SUTP and 51.6% of the ₹262.5 crore under UTF are allocated towards non-sustainable transport projects like carriageway and flyover development. 

In a Nutshell

The substantial doubling of funding for walking and cycling projects highlights PCMC’s commitment to its NMT Policy goals. However, public transport remains underfunded with a visible shortfall of buses and a dire need for improved quality of service in the city. On the contrary, car-centric projects continue to receive disproportionately high funding. To achieve its goals, PCMC should not only increase funding for sustainable transport initiatives but also simultaneously reduce the allocations for high-value car-centric infrastructure. This can be achieved through reallocation of existing budgets towards sustainable transport projects. 

The study also provides recommendations for a sustainable transport-focused budget, exploring innovative revenue sources like parking management, municipal bonds, national and international grants. It also emphasises the need to consistently allocate budgets for walking, cycling, and public transport projects to help PCMC maintain its status as a leader in sustainable transport in India.  

Since presenting the findings at the Smart Cities Mission’s National Conference in January 2024, the team has also been focusing on helping cities with securing additional funding through this data-driven approach. In the next blog in the series, we’ll take a deep dive into the process of the budget analysis including methodology, limitations, and the challenges faced while conducting the study. Stay tuned! 


Written by Donita Jose, Senior Associate Communications

Edited and technical inputs by Rutuja Nivate, Associate- Urban Development and Pranjal Kulkarni, Programme Manager – Healthy Streets and Compact Cities

Filed Under: Low Emission Zones, sustainable-transport-magazine, Transportation budget Tagged With: Electric bus, electric mobility, India, Maharashtra, Municipal Budget, Parking, Pimpri chinchwad, Public Transport, Pune, Sustainable Transport, Sustainable Transport Policy

Money’s worth: Pune sets exemplary sustrans budget

21st July 2017 by admin

Written by Mayank Balakrishnan | Edited by Nashwa Naushad

“I don’t have my own vehicle. Does that mean I’m not entitled to space on the street?” In the past, this had been the cry of many in one of Maharashtra’s most prominent upcoming smart cities – Pune. However, over the years, the tides have turned, with the city taking greater efforts to improve walking, cycling and public transportation facilities for its people. Last year’s budget proposal especially, witnessed a paradigm shift in Pune’s transportation expenditure — Rs.397 crores (i.e) over half of the city’s transport budget, was spent on sustainable transport initiatives.

The good news does not end there – this rain of resources will continue to shower in 2017-18, with more funds for achieving the city’s sustrans vision. Rs.534 crores have been assigned for sustainable transportation projects, out of a total transportation budget of Rs. 1040 crores for the city (51%).

Upgradation of the existing Satara Road BRT has been initiated.

Around 52% of a total of Rs. 769 crores spent last year on transportation, was for sustrans projects, as allocated in the 2016-17 budget for Pune. These expenses are materialising today. JM Road, one of the busiest stretches in the city, is being redesigned with wide footpaths and a cycle track on both sides. 21km of BRT construction along with upgradation of the existing Satara Road BRT corridor in the city has been initiated.

Pune is set to make an even bigger leap this year. The sustrans projects to be undertaken with the 2017-18 budget include NMT improvements with Rs.56 crores, in addition to Rs.80 crores allotted for the construction of cycle tracks. The city aims to eventually create over 100km of cycle tracks in a phase-wise manner. The budget also allocates Rs.137 crores to complete on-going BRT redesign and expansion work.

DP Road in Aundh turns vibrant with a 500m pilot stretch redesigned by Prasanna Desai Architects. 60kms of footpaths are to be redesigned as part of the Smart City Proposal.

Furthermore, Pune’s Smart City Proposal (SCP) of Rs 1100 crore would be used to create 42 km of cycle tracks, 60 km of redesigned footpaths – 500m of which has been kicked off vibrantly in Aundh on D.P. Road, 8 km of BRT corridor, and for the procurement of E-buses and technology based projects such as command control centers, smart ticketing, smart bus stops, integrated road asset management and developing a traffic app.

Throughout Pune’s sustrans journey so far, ITDP has provided the requested technical assistance to PMC, helping them review street and BRT corridor designs. ITDP will continue to assist the corporation with its future endeavours. Considering the current developments, PMC is sure to continue channelising its resources in the right direction – towards creating a sustainable Pune!

 

Note: The total transportation budget includes projects by Road department, PMPML and Projects departments
1 Cr = 10 million | 1 US$ = approx. Rs 65

 

Filed Under: Transportation budget Tagged With: Pune, Pune-Pimpri Chinchwad, Sustainable Transport Policy

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