Maharashtra Extends MSRTC Land Lease to 98 Years for RedevelopmentMaharashtra Extends MSRTC Land Lease to 98 Years for Redevelopment

06 Aug 2025

Maharashtra Extends MSRTC Land Lease to 98 Years for Redevelopment

Maharashtra extends MSRTC land lease to 98 years to boost revenue through private redevelopment of bus stands across urban and rural areas.

Review

Author

PV

By Pratham

Share

In a major push to attract private investment and modernize bus terminals, the Maharashtra cabinet has approved a proposal to extend the lease tenure of redeveloped MSRTC lands from 60 years to 98 years. The aim is clear. Boost revenue. Improve infrastructure. And build stronger partnerships under the public-private partnership model.

The move comes just a year after the state had increased the lease period from 30 to 60 years. Now, the new policy will allow private developers to hold the land for an initial 49 years. That lease can then be renewed for another 49 years.

Some cabinet members, including Deputy Chief Minister Ajit Pawar, raised concerns over the long tenure. Chief Minister Devendra Fadnavis flagged the risk of sub-letting by developers. But after discussions, the cabinet gave the green light.

MSRTC, which operates a network of 598 bus stands and 251 depots, has been serving the people of Maharashtra for over seven decades. It's one of the backbones of commercial transport buses across the state. However, the service is under financial stress.

Currently, MSRTC faces a daily loss of ₹3 crore. Concessions like free travel for girl students and 50 percent discount for women passengers have added to the burden. The accumulated loss? A staggering ₹10,300 crore.

To turn things around, the government is betting on private participation. The earlier model required builders to pay upfront and hand over a renovated bus stand. The new model is more revenue-driven.

Transport Minister Pratap Sarnaik explained the shift in approach. “A 98-year lease would generate more revenue than a 60-year lease, ensure a longer period of business at the same location and would help to increase the income of MSRTC,” he said.

“Unlike our earlier policy of taking an upfront payment along with renovated bus stands, the new policy demands a share in the builder’s commercial property,” he added. “Whoever offers a greater share in commercial space will get the contract. So we will get renovated bus stands free of cost and commercial space in the redeveloped premises, from which we can earn rental income.”

Sarnaik confirmed that while the revenue estimate has not been finalized, it will surpass what the previous model could offer.

MSRTC will now prepare a list of bus stands for redevelopment. But there’s a twist. Every bidder must take up at least three projects. One in an urban area, another at the tehsil level, and one in a rural location. The idea is to ensure even the smaller, less profitable bus stands see improvement.

This comes at a time when Maharashtra commercial vehicle operators are looking for better infrastructure. Improved bus terminals will support not just MSRTC’s commercial buses, but also ease operations for other commercial vehicle segments.

To further expand its services, MSRTC is also planning a mobile application. Called the ‘Chhava app’, it will connect users with rickshaws and taxis. “It will ensure a good remuneration for drivers and owners and safety for passengers,” Sarnaik said.

The state’s move reflects a broader shift. From public burden to public-private balance. And from losses to long-term gains. For the future of MSRTC commercial operations and for Maharashtra’s transport landscape, this could be a turning point.

Web Stories

Latest Industry Insights News

  • Force Motors Rolls Out AI-Driven iPulse for Fleet Intelligence
    Force Motors Rolls Out AI-Driven iPulse for Fleet IntelligenceForce Motors has launched iPulse, a new AI-powered platform for real-time fleet tracking and diagnostics. The system is designed for Force commercial vehicle operators. It helps them manage performance, detect faults early, and reduce downtime.The pl...
    PV

    By Pratham

    Wed Aug 06 2025

    3 min read
  • Electric 3-Wheelers Surge Ahead, Set to Break Sales Record in 2025
    Electric 3-Wheelers Surge Ahead, Set to Break Sales Record in 2025Electric three-wheelers are charging ahead. In July 2025, the segment notched its best-ever monthly retail sales with 69,145 units sold. This gives e-3Ws a commanding 62 percent share of India’s three-wheeler market, up from 58 percent a year ago.In...
    PV

    By Pratham

    Wed Aug 06 2025

    4 min read
  • ZF CV Control Systems India FY25 Earnings Up 13.5%
    ZF CV Control Systems India FY25 Earnings Up 13.5%ZF Commercial Vehicle Control Systems India has reported a 13.5% rise in net profit for FY25. The growth came despite flat revenue. Strong margins and tight cost control helped drive earnings.The company earned ₹4,610 crore in profit. Last year, it e...
    PV

    By Pratham

    Tue Aug 05 2025

    2 min read
  • NITI Aayog Flags India’s Slower Pace of EV Adoption
    NITI Aayog Flags India’s Slower Pace of EV AdoptionIndia wants to lead the global EV race. But its progress so far isn’t fast enough. That’s the message from NITI Aayog, the government’s policy think tank.At a recent event, NITI Aayog raised concern over India’s current pace of electric vehicle adopt...
    PV

    By Pratham

    Tue Aug 05 2025

    3 min read
  • Electric 3-Wheelers Set New Sales Record in July 2025
    Electric 3-Wheelers Set New Sales Record in July 2025India's electric three-wheeler market had its best sales ever in July 2025. The segment had 69,144 units, which is a 9% increase from 63,675 units in July 2024. The electric 3W industry keeps growing at a fast rate with this. Mahindra, Bajaj, and TVS...
    BS

    By Bharat

    Tue Aug 05 2025

    5 min read
  • Fast EV Charging for Commercial Vehicles Coming to TN Highways Soon
    Fast EV Charging for Commercial Vehicles Coming to TN Highways SoonChennai: Tamil Nadu is set to get high-speed EV charging stations for commercial vehicles along key highways. State industries minister T R B Rajaa made the announcement on Thursday, adding that the first such facility will come up in Ulundurpet.The...
    PV

    By Pratham

    Mon Aug 04 2025

    3 min read
  • Govt to Audit E-Rickshaw Plants Before New Model Gets Approval
    Govt to Audit E-Rickshaw Plants Before New Model Gets ApprovalThe government plans a big change. From April, it will require e-rickshaw manufacturers to clear audits of their production facilities before they can get approval for any new model.This rule is simple but sharp. If a firm wants to sell a new electri...
    PV

    By Pratham

    Mon Aug 04 2025

    3 min read
  • Mahindra Records 33% Growth in Domestic CV Sales – July 2025
    Mahindra Records 33% Growth in Domestic CV Sales – July 2025Mahindra & Mahindra Ltd., one of the leading commercial vehicle players in India, puts India CV sales in the July 2025 period at 33% higher. It sold 31,046 commercial vehicles last month.Much of this growth was driven by the SCV and pick-up segme...
    IG

    By Indraroop

    Mon Aug 04 2025

    4 min read
  • Maharana Ray Joins OPG Mobility as President & CGO to Lead Growth
    Maharana Ray Joins OPG Mobility as President & CGO to Lead GrowthNew Delhi, August 04, 2025 — OPG Mobility has named Maharana Ray as its new President and Chief Growth Officer (CGO). The company, previously known as Okaya EV, made the announcement today. Ray will now lead the company’s electric vehicle business, i...
    PV

    By Pratham

    Mon Aug 04 2025

    3 min read

Categories

*Prices are indicative and subject to change.
91trucks

91trucks is a rapidly growing digital platform that offers the latest updates and comprehensive information about the commercial vehicle industry.

Our Partner Website

91tractors.com
91infra.com

Get Connected