Mumbai: In a major policy shift to promote commercial utilisation of surplus land held by the Maharashtra State Road Transport Corporation (MSRTC), the state cabinet has approved an extension of the lease period from the earlier 60 years to 98 years – divided into two phases of 49 years each.
The decision was taken during the state cabinet meeting chaired by Chief Minister Devendra Fadnavis On Tuesday. Officials said the revised policy aims to accelerate the development of proposed MSRTC projects, including modern bus depots and facilities for passengers in metropolitan and urban areas.
Previously, under the 2001 policy, the lease period for MSRTC land was fixed at 30 years. Based on that, the corporation had implemented 45 projects under the 'buildoperate-transfer' (BOT) model until 2016. Thirteen modern bus terminals were proposed across the state, but most received a lukewarm response, with only the Panvel and Chhatrapati Sambhajinagar projects gaining traction.
In 2024, a revised policy was introduced, extending the lease period from 30 to 60 years. During the drafting of this policy, a committee of experts pointed out that most government corporations and authorities offer lease agreements for up to 99 years. The longer lease period was seen as improving project viability and attracting significantly higher upfront premiums – 1.5 to 2 times more – for MSRTC.
Considering this, the MSRTC Board approved increasing the lease term to 99 years for PPP (public-private partnership) projects.
This extended lease policy is expected to make commercial use of MSRTC land more viable and attract private investment, leading to enhanced infrastructure and services for commuters across Maharashtra.
