In a surprising development, the Pune Smart City Development Corporation (PSCDCL) has decided to continue managing the ‘Adaptive Traffic Management System’ (ATMS) for the next five years, reversing its earlier plans to hand over the project to the Pune Municipal Corporation (PMC). As per the new arrangement, PMC will pay maintenance charges to PSCDCL under an agreement. The ATMS, launched by PSCDCL with support from PMC, is aimed at reducing traffic congestion in Pune by synchronizing traffic signals and is considered a vital component of the city's smart infrastructure initiatives.

The decision to retain responsibility for the system with the Smart City Company will be confirmed in the upcoming meeting of its board of directors, as confirmed by Prithviraj B P, the Additional Commissioner of Pune Municipal Corporation (PMC).

Initially, the Smart City initiative oversaw the ATMS. However, following the central government's decision to scrap the Smart City project, the process of transferring the project to PMC had started. This changed when the central government announced an extension of the Smart City project, leading the Smart City authorities to retain the responsibility for managing the ATMS.

The Smart City mission, launched by Prime Minister Narendra Modi’s government, initially included Pune among several select cities. However, in June 2023, the central government decided to terminate the mission. Subsequently, PSCDCL began requesting PMC to take over various projects, including the ATMS. PMC had also initiated steps to assume control of these projects, but in July 2024, the Union Ministry of Housing and Urban Affairs announced that the Smart City project would be extended until March 2025.

Prithviraj B P, the Additional Commissioner of PMC, clarified that the Smart City has not handed over the ATMS project to PMC. He explained that the PMC would only be paying Operation & Maintenance (O&M) charges to the Smart City and that these charges had not yet been paid. Before making any payments, PMC would seek feedback from the Police Department and conduct a functionality study of the system. He also mentioned that the central government’s decision to extend the Smart City project was in effect until March 2025.

In 2018, PMC approved a budget of Rs 1.02 billion for installing an automatic signal system at 125 intersections and Rs 680.38 billion for maintenance over the next five years after the project’s completion. PSCDCL is responsible for implementing the project.