The preparation of detailed project report (DPR) work was undertaken by the Delhi Metro Rail Corporation and they submitted their report on 15 August 2008. In 2010, the Pune Municipal Corporation (PMC) delayed submitting the proposal to the Union government to make provisions in the annual budget for the project. Due to red tape and bureaucracy, the DPR was approved by the Maharashtra government only on 12 June 2012.
Pune Metro Rail Corporation (PMRC), a special purpose vehicle (SPV) to execute for the project, will be formed.
Initial plans were to build a few sections underground and the rest elevated. However, citizens of Pune did not want elevated routes as they felt that the roads could not bear the increased traffic would result from the construction. Most roads were also too narrow to accommodate the pillars of elevated routes. It was decided that all the routes in the city would be underground, although the map and the details of phases showed elevated routes. In November 2011, the Maharashtra Government declared that all the routes would be underground. However, in April 2012, the PMC declared that all routes will be as per the DMRC report, mostly elevated and partially underground (in core city areas).
Line 2 will be the first line to be built. It will connect Ramwadi to Vanaz via Mangalwar Peth and Deccan Gymkhana. The line will be 15 km long and elevated. It is expected to cost 25.93 billion (US$420 million). The main depot will be at Kothrud.
The line will be extended to Chandannagar and a separate line will go to the Pune airport.
The estimated project cost for Phase I and II are INR 69.6bn and INR 32.24bn respectively. The project cost will be funded by the PMC and PCMC together bearing 10% of this cost, the state government 20% and the central government will bear 20% of this cost. The remaining 50% will be obtained from loans. The state government's share of 20% includes the expenses of acquiring land, including government land, at market price. The real frustration with people of Pune is when will metro begin its construction. FSI 4 is another issue itself. The argument right now is between Congress and BJP rather than elevated or Underground.