Maharashtra transport department plans monetisation of MSRTC assets

For the purpose, the corporation is amending its policy for development of its land parcels on a build, operate and transfer (BOT) basis. While attracting potential investors, the redeveloped facilities will also provide amenities to passengers.

In a bid to help Maharashtra State Road Transport Corporation (MSRTC) to come out of the red and make profits, the state transport department has planned to monetise its assets by handing over development rights of its lands, which includes 247 bus depots and 578 bus stations to private parties. For the purpose, the corporation is amending its policy for development of its land parcels on a build, operate and transfer (BOT) basis. While attracting potential investors, the redeveloped facilities will also provide amenities to passengers. Most of the bus stations and depots are located at prime places in various cities of the state.

MSRTC has a fleet of around 18,500 buses. (HT FILE)

MSRTC, which runs state transport bus service across the state except major cities like Mumbai and Pune, has been in a bad shape financially. With a fleet of around 18,500 buses, MSRTC catered to around 6.7 million commuters daily in the pre-pandemic era. However, it is facing annual losses of about ₹7,500 crore.

Transport minister Anil Parab said the plan would help MSRTC overcome its mounting losses while also creating amenities like toilets, drinking water facilities and canteens for passengers. “We have a passenger load of just about 40% (of pre-pandemic time). The rise in diesel prices has increased… We also have a salary bill of ₹300 crore each month. These losses are rising, as many of our buses are operating under their capacity,” he said.

At present, developers must pay a one-time premium to the corporation and the property is reverted on completion of 30 years. This, officials said, has prevented the present policy from taking off and ensuring a revenue stream to the beleaguered MSRTC.

Parab said that hence they were planning to develop MSRTC’s depots on a BOT basis to generate lease revenues and create facilities for commuters. However, the land will not be sold; instead, shortlisted private developers will have to lease out the commercial component and share a certain percentage of revenues with the public transport utility.

Shekhar Channe, managing director of MSRTC, said the present BOT policy, which was finalised 20 years ago, granted an extra floor space index (FSI) of 0.5 in addition to the FSI of 1 for commercial development of MSRTC lands.

“The land was given to the bidder who gave the highest one-time premium and the property would be returned to us at the end of 30 years. This led to a tepid response as developers did not find these terms attractive. Hence, we are planning to increase the period to 45 years which will be further extendable by 15 years, and instead of a one-time premium, we will introduce an annual lease,” added Channe. He said this would help MSRTC get steady revenue, while also making it attractive to developers. The old policy has led to the development of just around 30 bus depots and stations.

Channe said the amended policy was being examined by the state government.

Parab said they would divide the depots and land parcels across Maharashtra in three categories — A, B and C, and those with commercial potential will be chosen for this purpose. “The idea is to make these depots self-sustaining at the local level,” said Parab. He added that they were planning to focus on depots outside metros to ensure MSRTC commuters in the hinterlands, who depend heavily on the utility, get access to quality services.

MSRTC is also looking at options like realignment of routes to reduce losses and break even. MahaCargo — the undertaking’s goods transport venture — has generated substantial business from various arms of the government. It is also working on allowing common people to use fuel pumps operated by the utility for its fleet to generate revenues.