The Pune Cantonment Board has proposed developing three prime properties in Koregaon Park, Dhobighat and on Mahatma Gandhi Road through the public-private partnership (PPP) model as it struggles to fund salaries, pensions and basic civic services.
The board has sent a proposal to the Ministry of Defence seeking statutory approval for the commercial use of the properties. Further action will begin only after the ministry grants permission, according to Vijay Chavan, executive engineer of the Pune Cantonment Board.
“The properties at MG Road, Dhobighat and Koregaon Park have been proposed to be given for commercial use under the PPP model. A proposal in this regard has been sent to the ministry of defence. A decision is awaited, and further action will be taken after the ministry grants its approval,” Chavan said.
The largest parcel identified for the plan is a 5.43-acre plot in Koregaon Park, one of Pune’s prominent upscale and commercially important areas. The fenced property has remained unused for several decades. Its location gives it particular significance for the board’s revenue-generation plans, although the proposal does not yet specify the type of commercial development or the financial terms of a possible PPP agreement.
The second property measures 1.5 acres at Dhobighat. The third, on MG Road, covers approximately 8,000 to 10,000 square feet. The board is also awaiting approval for the commercial utilisation of an old court property on MG Road. Options under consideration include a commercial complex or infrastructure facilities developed and operated by the board itself.
The move comes as the cantonment board faces a substantial gap between its regular income and expenditure. It requires at least Rs 12 crore each month to pay the salaries and pensions of serving and retired employees, in addition to meeting essential expenses such as water and electricity bills. Its monthly revenue, however, is less than Rs 2 crore, leaving it dependent on grants from the Ministry of Defence for routine operations.
The ministry provided the board with Rs 25 crore in financial assistance a few months ago to help meet its expenses. The financial shortage has also affected civic service delivery, with residents regularly raising complaints about various local issues. The proposed land monetisation is therefore intended not only to generate one-time development value but also to create a more regular income stream for the board.
Commercial development within cantonment areas requires approval under the applicable defence and cantonment administration framework. Until the ministry takes a decision, the board cannot proceed with the proposed PPP process or begin development on the identified properties. The next milestone is the ministry’s decision on the statutory approvals sought by the Pune Cantonment Board.
