Mumbai: The Maharashtra government has approved the commercial development of surplus land owned by the Maharashtra State Road Transport Corporation (MSRTC) under the Public-Private Partnership (PPP) model, paving the way for a new source of long-term revenue for the state transport undertaking.
MSRTC has more than 3,500 acres of land across approximately 850 locations in Maharashtra, much of it situated in strategically important areas. The planned development of these properties for commercial, residential, industrial and other business purposes could generate substantial upfront premium payments as well as recurring revenue. MSRTC is also expected to receive a share in the developed commercial complexes, providing an additional source of annual income.
Surplus land to be leased
Under the decision, MSRTC’s surplus land can be leased for up to 98 years under a 49+49-year arrangement. The move aims to strengthen the corporation’s financial position by generating regular income through the planned commercial use of its land assets.
A high-level committee has been constituted under the chairmanship of Transport Minister and MSRTC Chairman Pratap Sarnaik to oversee the process. The initiative is expected to facilitate the planned and transparent development of the corporation’s properties.
According to the government resolution, PPP-based development projects can be undertaken on various categories of land held by MSRTC, including land owned by the corporation, acquired through land acquisition, transferred from the erstwhile Road Transport Department, held under lease agreements, or received through gift deeds.
Tender and approval requirements
The government has made it mandatory to invite separate tenders for each property being developed under the PPP model.
Certain concessions have also been provided under the Maharashtra Public-Private Partnership Policy, 2026, for viable projects that are at an advanced stage of finalisation. The relevant committee will approve the project’s tender, concession agreement and financial structure. Final approval for the tender of every project will be mandatory at the Chief Minister’s level.
Committee recommends longer lease period
Considering MSRTC’s financial position, the Subodh Kumar Committee had recommended that a 90-year lease model with an upfront premium could be more beneficial to the corporation than a conventional long-term lease arrangement. Subsequently, the state government approved extending the lease period to a maximum of 98 years under the 49+49-year structure.
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Revenue to strengthen passenger services
Speaking about the decision, Transport Minister Pratap Sarnaik said MSRTC’s land assets were a valuable resource and would be utilised to strengthen the corporation’s finances over the long term, rather than merely generate short-term revenue.
He further emphasised that financial self-reliance was essential to improving passenger services. The revenue generated through the planned development of surplus land would be used to strengthen MSRTC’s services and facilities, he added.
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