The Maharashtra government has approved commercial development of over 3,500 acres of land owned by the state road transport corporation under the public-private partnership (PPP) model, with leases extending up to 98 years, a minister said on Oct 9.
The move to commercially develop these properties is aimed at ensuring Maharashtra State Road Transport Corporation (MSRTC)’s long-term financial empowerment and maximising its revenue.
In a statement, Transport Minister Pratap Sarnaik said the MSRTC has more than 3,500 acres of land at around 850 locations across the state, much of it in prime areas. The development of these properties for commercial, residential, industrial and other purposes is expected to generate substantial revenue for the cash-strapped corporation.
The state government has approved a lease period of 49 years, extendable by another 49 years, for the development of surplus land under the PPP model, paving the way for a long-term revenue stream for the corporation.
A high-level committee has been constituted under the chairmanship of Sarnaik, who is also the MSRTC chairman, to oversee the process.
Under the government resolution, development projects can be undertaken on various categories of land held by the corporation, including properties owned by it, acquired through land acquisition, transferred from the erstwhile Road Transport Department, held under lease agreements and received through gift deeds.
Separate tenders will be mandatory for each property to ensure transparency in the selection of private developers, the statement said.
Projects at an advanced stage of preparation may be eligible for certain concessions under the Maharashtra Public-Private Partnership Policy, 2026. The committee’s approval will be required for the tender process, concession agreements and the proposed financial structure of projects.
Final tenders for each project will also require approval at the chief minister’s level, according to the statement.
The government has also considered a recommendation by the Subodh Kumar committee that an upfront premium-based lease model could be more beneficial to the corporation than a conventional long-term lease arrangement.
The revised 98-year lease framework is expected to help the MSRTC secure upfront premium payments as well as a share in commercial complexes developed on its land, generating recurring annual income, Sarnaik said.
“The land owned by the MSRTC is a valuable asset of the corporation. These properties will be utilised not merely to generate temporary income but to ensure the MSRTC’s long-term financial empowerment,” Sarnaik said.
He said the objective was to maximise revenue from these assets through transparent tendering, appropriate commercial planning and the PPP model.
Financial self-reliance was essential to strengthen passenger services, Sarnaik said, adding that the revenue generated through the development of surplus land would be used to improve the corporation’s services and facilities.