The Pune Municipal Corporation (PMC) and Pimpri-Chinchwad Municipal Corporation (PCMC) generated Rs 2601 crore and Rs 881.33 crore, respectively, from building permissions alone in the financial year 2024-25, an unprecedented feat for both civic bodies.
Shridhar Yeolekar, superintending engineer, building permission department of the PMC said, “The civic body has witnessed a record-breaking revenue surge from building permits, with the building permission department generating Rs 2601 crore in the financial year 2024-25.”
Meanwhile, the property tax department collected Rs 2355 crore in the same period. For the second consecutive year, the building permission department has outperformed the property tax department in revenue generation, significantly boosting the civic body’s finances.
In the previous financial year (2023-24), the PMC’s building permission department set a record by collecting Rs 2428 crore from 1773 building permits. This year, the department has surpassed that figure, granting 3359 building permits and securing Rs 2601 crore.
The PMC had set a target of Rs 2492 crore for building permission fees and development charges in its 2024-25 budget. However, the target was exceeded by Rs 109 crore, civic officials said.
Asked why Pune’s real estate market appears to be thriving, Yeolekar said, “There several factors involved in growth. Pune continues to attract residents due to its premier educational institutions, advanced healthcare facilities, favourable climate, abundant job opportunities, infrastructure and status as an IT hub. This could be the reason for the surge in building permit approvals and the historic revenue boost for the PMC.”
Year-on-year increase
In 2019-20, the building permission department fetched the PMC Rs 769 crore in revenue. The figures for 2020-21, 2021-22, 2022-23 and 2023-24 are Rs 507 crore, Rs 2095 crore, Rs 1636 crore and Rs 2407 crore respectively. The PMC gave maximum building permissions for redevelopment projects in the city area. In 2024-25, the building permission department of the PCMC witnessed an increase of Rs 77 crore compared to the previous year.
PCMC officials said that the large-scale construction projects in the city were previously stalled due to a regulatory shift requiring environmental clearance from the Central environment ministry instead of the Maharashtra environment department. The prolonged approval process led to a significant decline in revenue for the civic body. However, with multiple construction approvals granted in March, revenue has witnessed a notable rise this year.
As per civic records, the primary revenue source was building permission fees, amounting to Rs 750.67 crore. Urban Transport Fund (UTF) charges contributed Rs 128.89 crore, while other income sources added Rs 1.74 crore. This cumulative revenue of Rs 881.30 crore has been deposited into the municipal treasury, marking a positive financial trend. In 2021-22, the PCMC generated Rs 1060 crore; in 2022-23, Rs 781 crore; and in 2023-24, Rs 804 crore.
Resident Speak
Aditi Jog, a resident of Kothrud, said, “Although the PMC generates huge revenue from the building permissions department and property tax, the ongoing rapid redevelopment work disturbs citizens’ peace. The elderly and small children cannot bear the deafening sound of machines used to demolish old buildings. The civic body should establish strict norms for such activities. Secondly, how will the PMC cater to the basic needs of water, roads, and drainage for new establishments? There is no clear vision for this. During the summer, Pune relies entirely on water tankers, and in the monsoon, it sinks due to waterlogging.”
Nilesh Kulkarni, a resident of Wakad, stated that while granting building permissions for new projects, the PCMC should first consider whether it can provide enough water and clean air. “The suburbs are dependent on water tankers. Due to extensive development work, air quality has deteriorated drastically, and the green cover is vanishing. The civic body must consider the entire ecosystem before carrying out development,” he said.
