The metro rail system introduced in major Indian cities in recent years has resulted in significant improvements in the country’s transportation infrastructure and intra-city connectivity. Rail-based ‘Mass Rapid Transit System’ has been widely accepted as a solution for most of the traffic and environmental pollution related problems which major cities throughout the world are facing now. Pune underground Metro will cover about 6 Km underground twin tunnel and five Underground stations. The main challenges during construction are TBM/NATM tunnelling & Station excavation through shallow water table, presence of old and historical buildings, settlement & vibrations due to blasting for NATM tunnel etc. This paper discusses about various parameters considered for planning and designing of the tunnel and underground stations.