What is the Revised Policy for Extending Lease Period for MSRTC’s Surplus Lands?
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Synopsis
The Maharashtra Cabinet has approved a significant policy change, extending the lease period for commercial use of MSRTC's surplus lands from 60 to 98 years. This strategic move aims to boost urban transport infrastructure and improve passenger services across Maharashtra.
Key Takeaways
- Lease period extended from 60 years to 98 years.
- Proposal led by Deputy Chief Minister Ajit Pawar.
- Aims to improve urban transport services.
- Enhances viability of MSRTC projects.
- Follows a strategic approach for public-private partnerships.
Mumbai, Aug 5 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, approved a revised policy on Tuesday to extend the lease duration for the commercial utilization of surplus lands owned by the Maharashtra State Road Transport Corporation (MSRTC), which manages state transport buses throughout Maharashtra.
Under the newly approved policy, the lease term for MSRTC’s surplus lands has been increased from 60 years to 98 years, divided into two phases of 49 years each.
The suggestion to extend the lease period for an additional 49 years came from Deputy Chief Minister Ajit Pawar, following a review of the commercial usage of MSRTC lands initially leased for 49 years. Ultimately, the cabinet approved the new total lease duration of 98 years.
A government release stated that this extension will enhance the development of MSRTC’s proposed projects, particularly focusing on the development and enhancement of bus stands and depots, thus improving services for passengers and other stakeholders in urban and metropolitan areas.
Previously, in 2001, the lease for additional lands held by MSRTC was set at 30 years, leading to 45 projects being initiated across the state until 2016 under the Build, Operate, and Transfer policy. This policy aimed to establish modern bus stands in 13 locations, but only received significant interest in Panvel and Chhatrapati Sambhajinagar.
In 2024, a new policy was created to allow commercial use of MSRTC’s excess lands, increasing the lease term from 30 to 60 years. An expert committee noted that various corporations and authorities had a lease period of 99 years. Extending this duration boosts project viability, with MSRTC often receiving 1.5 to 2 times the anticipated advance premium.
Following this, the Corporation’s Board of Directors approved extending the lease duration from 60 years to 99 years for projects under the Public-Private Partnership (PPP) model at its sites. With the board's approval, the cabinet has now sanctioned the lease extension from 60 years to a total of 98 years (49 years plus 49 years). The government is optimistic this will enhance the commercial viability of MSRTC’s surplus lands, with renewals following existing policies and rules.
Point of View
I perceive the Maharashtra Cabinet's decision to extend the lease period for MSRTC's surplus lands as a strategic and necessary move. This policy not only aims to enhance urban transport infrastructure but also demonstrates a commitment to improved passenger services. It reflects a forward-thinking approach that seeks to leverage public resources for optimal commercial benefit.
NationPress
19/08/2025
Frequently Asked Questions
What is the new lease period for MSRTC’s surplus lands?
The new lease period has been extended from 60 years to 98 years, divided into two phases of 49 years.
Who proposed the extension of the lease period?
The extension was suggested by Deputy Chief Minister Ajit Pawar.
How will this policy affect urban transport services?
The policy aims to accelerate the development of bus stands and depots, improving services for passengers and stakeholders in urban areas.
What was the previous lease period before this revision?
The previous lease period was set at 60 years, with earlier terms being as short as 30 years.
Why was the lease period extended to 98 years?
The extension enhances project viability and allows MSRTC to attract better investment and commercial interest.
