MSRTC to lease out 39 land parcels at bus depots for commercial purpose
The Cabinet also allowed the MSRTC to carry out the tendering process on BOT basis and finalise the operator at the corporation level.
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With the addition of the 12-meter buses, MSRTC's passenger capacity will increase significantly. (File)The state Cabinet Monday gave its approval to Maharashtra State Road Transport Corporation (MSRTC) for leasing out its 39 land parcels at bus depots for commercial development purpose on a Build, Operate and Transfer (BOT) basis for a period of 60 years.
In the Cabinet meeting, a decision was taken to increase the agreement period from 30 years to 60 years and the land will be allotted to a company through a tendering process which will be carried out by the state-run MSRTC.
As per the decision, the Floor Space Index(FSI) available on these 39 land parcels will be allowed to use for the commercial purpose, except for the 0.5 FSI which will be used for carrying out development of depots and other facilities by the MSRTC.
As per the statement released by the government, one FSI can be used for residential and commercial purpose under the BOT policy and the corporation will be exempted from paying 50 per cent share to the government while using this land on commercial basis.
The Cabinet also allowed the MSRTC to carry out the tendering process on BOT basis and finalise the operator at the corporation level.
According to the MSRTC, in 2008 and 2016, the corporation had implemented similar projects on land parcels on BOT basis and has earned Rs 32 crore towards premium and got a construction on the 29,780 square metre area which is worth Rs 22 crore.
The MSRTC said in the proposal that the corporation had also attempted to implement similar project on 13 depots in 2006, however, they received response for only Panvel and Chhatrapati Sambhaji Nagar(Aurangabad) depots owing to some conditions in the BOT which created hurdle for the implementation of the project.
The official said that one of the major hurdle was the lease period of 30 years which was not viable financially for the implementation of the project.
“With implementation of only 45 projects in the last 20 years against the backdrop of increasing urbanisation, it is seen that state transport corporation’s revenue generation strategy has not gained the desired momentum. After reviewing the said projects… it was pointed out that if the BOT policy of the corporation is modified to some extent, there is a possibility of increasing the amount of revenue by utilising the land and existing structures of the corporation on a commercial basis. Therefore, the corporation had requested the Government to revise the existing policy and lease agreement period,” an official said.
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