Maharashtra Cabinet Approves Extension Of Government Land Lease Period Upto 49 Years

Mumbai, Jan 27: To boost long-term investments and improve revenue generation, the Maharashtra government on Tuesday approved extending the lease period of government land beyond the existing 30 years.

Under the new policy, lease tenure can now be increased up to a maximum of 49 years, with provisions for further renewal under specified conditions. The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis.

Amendments to land revenue rules

As per the provisions of the Maharashtra Land Revenue Code, 1966, and the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971, government land is currently leased out for various purposes for a period of 30 years. The cabinet has now approved amendments to allow the initial lease period to be extended up to 49 years.

Scope of revised lease framework

According to the revised framework, government land owned by various administrative departments, as well as land transferred by the revenue department for specific purposes — including land under the jurisdiction of state-owned corporations, boards and authorities — can be leased for commercial and revenue-generating purposes for up to 49 years.

After the completion of this term, the lease can be renewed once again for a further period of up to 49 years, provided there is no violation of any terms and conditions. The renewal will be subject to reassessment of lease rent and departmental approval.

Revenue generation and stability

The government stated that the move would enable public sector corporations, boards and authorities to maximise revenue from land assets and provide greater stability to institutions and private entities engaged in long-term commercial activities.

Periodic revision and monitoring

In addition, the cabinet approved provisions for periodic revision of ground rent (lease rent) at fixed intervals and the regular collection of lease payments from lessees.

The responsibility of monitoring timely payment and compliance will rest with the respective district collector offices, ensuring effective supervision and financial discipline.

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Officials said the policy will bring greater clarity, transparency and consistency in the management of government land leases, while encouraging long-term infrastructure development and commercial investment across the state.

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