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.
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