Techno-Economic Feasibility Study of the Proposed Pune Outer Ring Road

Abstract

The Pune Metropolitan Region is experiencing acute urban mobility constraints attributable to the convergence of three National Highways — NH-48, NH-65, and NH-60 — within its core, resulting in average arterial speeds below 15 km/h during peak hours and escalating Vehicle Operating Costs (VOC). This paper presents a comprehensive techno-economic feasibility study of the proposed 174 km Pune Outer Ring Road (PORR), a greenfield expressway designed to divert inter-city commercial freight from the urban core. The study addresses three principal dimensions: structural and geotechnical design, risk classification, and financial viability. Geotechnical challenges posed by the Deccan Traps formation are mitigated through the adoption of the New Austrian Tunneling Method (NATM) across six tunnel segments totaling 3.655 km, complemented by deep-pile foundations for river crossings over the Mula, Mutha, and Indrayani rivers. A structured risk assessment matrix identifies and addresses geotechnical variability, ecological sensitivity, infrastructure conflicts, and land acquisition complexities across 67 peri-urban villages. The proposed ₹42,000 crore capital expenditure is structured under a Design-Build-Finance-Operate-Transfer (DBFOT) procurement model, with post-construction monetization through Toll-Operate-Transfer (TOT) leases and Infrastructure Investment Trusts (InvITs), supplemented by Land Value Capture (LVC) mechanisms along the reserved 110 m right-of-way corridor. Traffic modelling projections indicate a diversion of over 25,000 PCUs on key segments, with total motorized vehicle volumes forecast to reach 270,065 PCU by 2040. The project yields an Economic Internal Rate of Return (EIRR) exceeding 18%, affirming its long-term economic viability and its potential as a replicable model for mega-infrastructure financing in rapidly urbanizing Indian metropolitan regions.