In a major policy shift, the Maharashtra government has extended the lease period for the Maharashtra State Road Transport Corporation’s (MSRTC) surplus land from 60 years to 98 years under the Public-Private Partnership (PPP) model. The move is aimed at strengthening the financial health of the cash-strapped corporation.
Revenue Model with Long-Term Lease
According to Transport Minister Pratap Sarnaik, the policy introduces a two-phase lease structure an initial 49-year lease, with an extension of another 49 years. A fixed share of revenue or commercial gains from projects will mandatorily flow to MSRTC during the entire period.
Boost for Private Investment
The minister said the extended lease period will attract private investment and ensure better utilization of idle MSRTC land parcels. This is expected to provide financial stability and support passenger-centric improvements.
Urban Land Development under DCPR & UDCPR
A key feature of the policy is that MSRTC’s land in the Mumbai Metropolitan Region (MMR) will be developed in accordance with Development Control and Promotion Regulations (DCPR-2034) and Unified Development Control and Promotion Regulations (UDCPR-2020). This alignment ensures commercial viability and compliance with urban planning norms.
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Unlocking Commercial Potential
Officials noted that the revised framework will unlock the commercial potential of surplus land and drive infrastructure development, generating sustainable revenue streams for the transport body.
Path to Financial Stability
The initiative is being positioned as a revival strategy for MSRTC, which operates one of the largest public bus networks in India. By leveraging land assets, the corporation aims to reduce its fiscal burden, modernize operations, and enhance passenger services.
