The Maharashtra State Road Transport Corporation (MSRTC) has unveiled an ambitious plan to redevelop nearly 1,485 hectares of its land across the state through the Public-Private Partnership (PPP) model to generate sustainable revenue and improve its financial position.
The proposal was presented to Chief Minister Devendra Fadnavis on Monday by senior MSRTC officials. It covers strategically located land parcels adjacent to bus depots, bus stations, workshops, and warehouses in urban, semi-urban, and rural areas across Maharashtra.
MSRTC has been facing mounting financial challenges, recording an estimated annual loss of around ₹591 crore in 2025-26, while its accumulated losses have reached nearly Rs 12,000 crore.
Reviewing the proposal, Fadnavis directed officials to adopt a depot-specific redevelopment strategy. “Separate planning should be carried out considering the commercial potential of each depot,” he said.
The Chief Minister also instructed that revenue generated from commercially viable projects should be deposited into an escrow account and later utilised to redevelop less profitable depots and fund other infrastructure projects undertaken by the corporation.
According to sources, MSRTC suffered significant losses during April and May this year, traditionally its strongest revenue-generating months, with 21 of the corporation’s 31 divisions reportedly operating at a loss.
The state government has clarified that ownership of the land will remain with MSRTC. Officials said the redevelopment is being planned under a 49+49-year lease model, allowing commercial development without transferring ownership of the assets.
Fadnavis also asked officials to examine legal provisions related to possible stamp duty exemptions and place proposals regarding incentives and concessions for private developers before the state Cabinet for approval.
The redevelopment programme forms part of the government’s broader strategy to create alternative revenue streams for the financially stressed transport undertaking. Earlier, Transport Minister Pratap Sarnaik had indicated that commercial development of MSRTC-owned land was under consideration, given the corporation’s extensive land bank across Maharashtra.
Under the proposed framework, redevelopment projects will be grouped into three packages covering bus depots and stations across the state. Properties will be classified into A, B and C categories based on their location, commercial viability and development potential. Officials said bundling different categories of properties into integrated packages is expected to attract private investment while ensuring balanced redevelopment.
An official said monetising these underutilised land assets through PPP projects would strengthen MSRTC’s finances, modernise transport infrastructure and reduce its long-term dependence on government support.
Source: The Times of India
