PUNE: The Maharashtra government on Friday approved the development of surplus land owned by the Maharashtra State Road Transport Corporation (MSRTC) under the public-private partnership (PPP) model, with lease periods of 49+49 years, allowing leases of up to 98 years. The MSRTC has more than 3,500 acres of land across around 850 locations in the state, much of it being in prime areas. Each site will require a separate tender, with the initiative aimed at generating long-term revenue to strengthen MSRTC’s finances and improve passenger services.
As per the information shared by the MSRTC, development projects can now be undertaken on various categories of land held by the corporation, including land owned by the corporation, acquired through land acquisition, transferred from the former road transport department, held under lease agreements, and received through gift deeds. The government aims to ensure planned and transparent commercial development of these properties to create a sustainable source of income for the cash-strapped transport corporation.
A high-level committee has been constituted under the chairmanship of transport minister and MSRTC chairman Pratap Sarnaik to oversee the process. Proposals relating to tenders, concession agreements and project structures will require the committee’s approval. The final tender for every project will also need approval at the chief minister’s level. The government has additionally provided for certain concessions under the Maharashtra Public-Private Partnership Policy 2026 for viable projects that are already at an advanced stage of development.
“MSRTC’s land assets are a valuable resource for the corporation. These properties will be utilised not merely to generate temporary income but to ensure the corporation’s long-term financial empowerment. Our primary objective is to maximise revenue from these assets through a transparent tendering process, appropriate commercial planning, and the PPP model,” Sarnaik said.
{{/usCountry}}“MSRTC’s land assets are a valuable resource for the corporation. These properties will be utilised not merely to generate temporary income but to ensure the corporation’s long-term financial empowerment. Our primary objective is to maximise revenue from these assets through a transparent tendering process, appropriate commercial planning, and the PPP model,” Sarnaik said.
{{/usCountry}}“Financial self-reliance is essential to strengthen MSRTC’s passenger services. The revenue generated through the appropriate development of surplus land will be utilised to improve the corporation’s services and facilities,” he added.
The decision follows a recommendation by the Subodh Kumar committee, which suggested that a 90-year lease model involving an upfront premium could be more beneficial to MSRTC than conventional long-term leasing arrangements. Subsequently, the government approved extending the lease period to 49+49 years, or a maximum of 98 years.