Cash-strapped Pune Cantt plans commercial makeover of 120-year-old MG Road building

Pune: The Pune Cantonment Board (PCB) is looking to alleviate its current financial crisis by repurposing its historic headquarters on MG Road into a commercial venture.This colonial-era structure, which boasts a history of over 120 years, served as the administrative heart of the PCB until 1988 before being transitioned into a cantonment court.Following the relocation of the court to a new facility in June 2024, the two-storey heritage building has remained vacant and inaccessible. By transforming this building into a revenue-generating asset, the board aims to leverage its prime location to generate steady revenue."We have initiated the process for change of purpose of the property. The proposal has been sent to the principal directorate, Southern Command, which will forward it to the Directorate General of Defence Estates in New Delhi for final approval," Vidyadhar Pawar, chief executive officer of the PCB, told TOI.Officials said once the approval comes in, the board will be permitted to redevelop the site into a commercial complex.Given MG Road's high footfall and premium real estate value, the project is expected to significantly boost the PCB's revenue.The move reflects a broader trend among cantonment boards across the country to unlock the commercial potential of legacy properties amid shrinking revenues and rising expenditure on civic services.PCB officials said the existing structure is no longer viable. According to an inspection carried out by the board's engineering department in 2017, the building was declared unsafe."The wall near the traffic signal at the junction is not that weak. So there is no immediate threat of it falling on the road. Once we get the necessary permission, we will explore possible revenue generative models for the board," a senior official of the board said.Located in the Pune Cantonment area, one of the city's most strategically governed zones under the defence administration, the property holds high commercial promise due to its proximity to key retail establishments and transport links.Financially, the PCB has been under pressure in recent years owing to limited revenue streams and increasing maintenance costs of civic infrastructure. Unlike municipal corporations, cantonment boards rely heavily on property tax and grants from the ministry of defence.Activists and former members of the board said the redevelopment could provide a much-needed fiscal boost, and authorities must balance commercial interests.Priyanka Shirigiri, former vice-president of the PCB, said, "We had proposed this model to the board in the past. Unless the board creates its own revenue sources, it will not be able to initiate any work and provide basic civic services."The board should follow up with the authorities concerned within the department and explore the possible projects at the site."The board is struggling to meet even monthly mandatory expenses. It only generates a revenue of around Rs3 to Rs3.5 crore per month as against its Rs12 crore monthly expenses. How can the board survive in the future if it does not create its own sources of revenue generation," another board member said.
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