August 6, 2025: Within a year of revising the lease tenure for private developers constructing Maharashtra State Road Transport Corporation (MSRTC) bus stands, the state cabinet on Tuesday approved a proposal to extend the period from 60 years to 98 years. Under the new arrangement, the initial agreement will be for 49 years, with a provision for a further 49-year extension. Although some ministers raised concerns during the discussion, the proposal was ultimately cleared.
MSRTC, which operates 598 bus stands and 251 depots across Maharashtra, has been providing affordable bus services for over seven decades. Approximately 20 years ago, the state introduced a policy to redevelop bus stands through a public-private partnership (PPP) model, fixing the lease at 30 years. So far, 45 bus stands have been developed under this scheme.
Currently, the corporation suffers daily losses of around Rs 3 crore due to passenger concessions, such as free travel for girl students and a 50% discount for women travellers. The cumulative loss over the years now stands at Rs 10,300 crore, prompting the government to seek revenue-generating measures. One of these involves awarding redevelopment contracts to private builders.
During the cabinet meeting, Deputy Chief Minister Ajit Pawar and other ministers questioned the rationale for such a long lease period. Chief Minister Devendra Fadnavis cautioned against sub-letting of the land by developers. After deliberation, the proposal was approved.
Transport Minister Pratap Sarnaik said the revised policy would secure greater revenue than before. “We will receive renovated bus stands free of cost along with a share in commercial property, from which we can earn rental income,” he explained. Bidders will also be required to develop three bus stands—one urban, one at the tehsil level, and one rural—ensuring balanced development. MSRTC also plans to launch the ‘Chhava’ app, aimed at providing safe and remunerative auto rickshaw and taxi services.
Source: Hindustan Times
