The announcement by the central government that it will not commit any further assistance under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to infrastructural projects in Pune because of a funds crunch could affect several key infrastructure projects.

Projects that could get hit are the Bus Rapid Transit System, the Mutha river improvement plan and 15 others in areas related to roads, storm water drains, water supply, solid waste management, sewage treatment, river and lake improvement, slum improvement and rehabilitation.

Pune’s Rs 6,643 crore City Development Plan (CDP) was slated to receive nearly 70 per cent of its funds from central and state governments. Additionally, Rs 31,500 crore has been allocated as additional central assistance (ACA) for sanctioning projects under the Urban Infrastructure and Governance (UIG) of the mission for seven years beginning from 2005-06 and Rs 11,400 crore has been earmarked for the sanction of projects under Urban Infrastructure Development Scheme for Small and Medium Town (UIDSSMT).

The city is witnessing a boom in development due to software exports – over 2000 companies which have their base here are estimated to have a combined turnover in excess of Rs. 10,000 crore. The centre has asked civic bodies under the mission to look at public-private participation to source their funds.