Eyeing extra revenue, Maharashtra Govt increases lease term for MSRTC land projects to 98 years

The state government has resolved to raise the lease term for the Maharashtra State Road Transport Corporation’s land development projects from 60 to 98 years to help the MSRTC improve its financial position by achieving extra revenue.

Officials said on Wednesday that the new policy would enable the development of the MSRTC’s surplus land under public-private partnership. According to the new policy, the lease period will be designed as 49 years plus 49 years, resulting in a tenure of 98 years.

“During this time, the private developers will be allowed to utilise the land for commercial purposes, but a percentage of the revenue or commercial space generated will have to be provided to MSRTC,” an MSRTC official said.

Numerous land plots owned by the MSRTC are underutilised or lie vacant, officials said. Leasing them on long-term contracts will help the government realise their economic potential, along with generating a constant flow of income for the transport corporation, they added.

“This is felt necessary for stabilising the corporation’s finances, which contributed to stress from operational expenses and commitments of passenger services,” an MSRTC official said.

The Government has also permitted the commercial utilisation of MSRTC plots in the Mumbai Metropolitan Region under the Development Control and Promotion Regulations and Unified Development Control and Promotion Regulations. This will allow for the larger use of MSRTC lands for commercial developments while adhering to urban planning standards, officials said.

The transport department has said the move is likely to have a number of advantages—land lying idle will be brought into utility, new projects would be fostered, and the MSRTC would get a financial injection to enhance its services.

The officials further stated that the additional income from the development of land could enable the corporation to improve infrastructure, keep its fleet in condition, and offer improved services in the long term.

Transport Minister Pratap Sarnaik is the chairman of the MSRTC.