MUMBAI: The Maharashtra Cabinet on Tuesday approved the commercial redevelopment of 3,500 acres of surplus Maharashtra State Road Transport Corporation (MSRTC) land through the Public-Private Partnership (PPP) model across about 850 locations in the State. The exercise is expected to generate around Rs 600 crore in annual revenue for the loss-making undertaking.
To expedite the projects, the Cabinet also granted a one-time exemption from certain provisions of the Maharashtra Public-Private Partnership Policy, 2026, while retaining its final approval powers.
Chief Minister Devendra Fadnavis said the MSRTC’s land would not be sold. “We have prepared a long-term development plan for the MSRTC. The land will be leased out, but ownership will always remain with the MSRTC,” he said after the Cabinet meeting at Mantralaya.
A senior official said the land development programme would comprise 236 projects bundled into 84 packages, covering 42.7 lakh square metres. The proposed redevelopment will utilise 32.4 lakh square metres of floor space index (FSI), creating 27.3 lakh square metres of commercial built-up area.
“The Transport Department estimates that the projects will generate an upfront premium of Rs 140 crore for the MSRTC and annual lease revenue of about Rs 600 crore. They are also expected to create nearly three lakh employment opportunities, including 1.2 lakh direct and 1.8 lakh indirect jobs,” the official said.
Officials said a detailed assessment of 236 properties identified 158 commercially viable sites and 78 non-viable sites for redevelopment. Following redevelopment, the MSRTC will retain 5,78,427 square metres for its operational requirements. The redevelopment, officials said, would ensure sufficient land remains available for bus operations while improving asset management, supporting future expansion and substantially increasing the corporation’s revenue.
To facilitate implementation, the Cabinet approved a one-time exemption from certain provisions of the Maharashtra Public-Private Partnership Policy, 2026, for commercially viable MSRTC land development projects that are in the final stages of implementation.
Under the decision, the MSRTC will not be required to obtain prior approval from the Cabinet Sub-Committee on Infrastructure or the Empowered Committee for Public-Private Partnership Projects before undertaking these projects. It has also been exempted from seeking the committees’ approval for project-specific tender documents, concession agreements and project structures.
However, the final approval for each project will continue to rest with the Cabinet Sub-Committee on Infrastructure.
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