Pune metro network is one of the major national projects in India. It aimed at developing an elevated andunderground transportation system to solve the severe traffic problems in Pune. The underground line includes 5 undergroundstations which are Shivajinagar, Civil court, Budhwar Peth, Mandai, Swargate and tunnels. The tunnel for Pune Metro Line 2 has acircular cross section of 5.8m internal diameter that consists of a precast segmental lining thickness of 0.275m. This reportpresents a parametric study on the effects of seismic waves on the tunnel structure through numerical modelling employing thefinite – element analysis. Full dynamic analyses were performed employing earthquake motion of maximum magnitude earthquakein Maharashtra which is Koyna earthquake in 1967 of 6.5 magnitude. The analysis of soil-structure interaction was done using thecommercial software Rocscience-RS2. The results proved that the 275 mm thick circular cross section can safely sustain theexpected static, dynamic and seismic stresses. This research work focuses on the behavior of Segmental lining used for the Punemetro tunnel under seismic loading. Detailed behavior of Pune metro tunnel, designing of Metro tunnel along with seismic loadingand its behavior have been studied. Finite element modelling by using software RS2 has been done for 6 cases.