+
MSRTC Plans 98-Year Leases to Boost Bus Stand Revenues
ECONOMY & POLICY

MSRTC Plans 98-Year Leases to Boost Bus Stand Revenues

The Maharashtra State Road Transport Corporation (MSRTC) is set to overhaul its revenue model by extending the lease tenure of its bus stands from 60 years to 98 years under the public-private partnership (PPP) model. The new strategy is part of MSRTC’s efforts to revive its financial health and create a sustainable income stream through long-term leasing and commercial redevelopment.

The move comes as the transport body, which has served the state’s intra-city and rural transport needs for over seven decades, faces mounting financial stress. MSRTC’s accumulated losses have reached approximately Rs 103 billion over the years, primarily due to subsidised fares and operational inefficiencies.

To tackle this, the corporation had earlier introduced the PPP model two decades ago, leasing 45 bus stands for 30 years. Last October, the lease term was extended to 60 years for the redevelopment of 72 additional stations. Now, the state transport department is preparing a new tender that further extends the lease period to 98 years to attract more investment and improve viability.

Under the revised model, MSRTC will no longer charge an upfront premium for redevelopment rights. Instead, contracts will be awarded based on the share of commercial property the private developer offers to MSRTC post-redevelopment. For example, if a developer constructs 1,000 sq ft of space, at least 30 per cent of it would be allocated to MSRTC. The corporation would then lease out this share to generate monthly rental income for the full lease duration.

A senior transport department official explained, “This approach guarantees MSRTC a recurring revenue stream throughout the lease term, rather than relying on one-time payments. It also aligns with real estate market practices, where longer leases command better investment interest.”

Over the past 20 years, MSRTC earned Rs 320 million in direct premiums from private developers and received redeveloped bus stands worth Rs 230 million. However, the shift to a share-based model is expected to be more beneficial in the long term.

The first term of the new lease structure will run for 49 years, followed by an automatic extension for another 49 years, totalling 98 years.

Transport Minister Pratap Sarnaik supported the proposal, noting, “A 98-year lease will attract higher investment and bring in more revenue compared to the existing 60-year model. It is in line with current real estate practices and ensures longer-term financial security for MSRTC.”

MSRTC currently manages 598 bus stands and 251 depots across Maharashtra, many of which are in need of redevelopment. The proposed plan, once approved by the state revenue department, will unlock the commercial potential of these locations while ensuring modern transport infrastructure for passengers.


The Maharashtra State Road Transport Corporation (MSRTC) is set to overhaul its revenue model by extending the lease tenure of its bus stands from 60 years to 98 years under the public-private partnership (PPP) model. The new strategy is part of MSRTC’s efforts to revive its financial health and create a sustainable income stream through long-term leasing and commercial redevelopment.The move comes as the transport body, which has served the state’s intra-city and rural transport needs for over seven decades, faces mounting financial stress. MSRTC’s accumulated losses have reached approximately Rs 103 billion over the years, primarily due to subsidised fares and operational inefficiencies.To tackle this, the corporation had earlier introduced the PPP model two decades ago, leasing 45 bus stands for 30 years. Last October, the lease term was extended to 60 years for the redevelopment of 72 additional stations. Now, the state transport department is preparing a new tender that further extends the lease period to 98 years to attract more investment and improve viability.Under the revised model, MSRTC will no longer charge an upfront premium for redevelopment rights. Instead, contracts will be awarded based on the share of commercial property the private developer offers to MSRTC post-redevelopment. For example, if a developer constructs 1,000 sq ft of space, at least 30 per cent of it would be allocated to MSRTC. The corporation would then lease out this share to generate monthly rental income for the full lease duration.A senior transport department official explained, “This approach guarantees MSRTC a recurring revenue stream throughout the lease term, rather than relying on one-time payments. It also aligns with real estate market practices, where longer leases command better investment interest.”Over the past 20 years, MSRTC earned Rs 320 million in direct premiums from private developers and received redeveloped bus stands worth Rs 230 million. However, the shift to a share-based model is expected to be more beneficial in the long term.The first term of the new lease structure will run for 49 years, followed by an automatic extension for another 49 years, totalling 98 years.Transport Minister Pratap Sarnaik supported the proposal, noting, “A 98-year lease will attract higher investment and bring in more revenue compared to the existing 60-year model. It is in line with current real estate practices and ensures longer-term financial security for MSRTC.”MSRTC currently manages 598 bus stands and 251 depots across Maharashtra, many of which are in need of redevelopment. The proposed plan, once approved by the state revenue department, will unlock the commercial potential of these locations while ensuring modern transport infrastructure for passengers.

Next Story
Infrastructure Urban

LANXESS Pigments Bring Colour to Concrete at Venice Biennale

LANXESS’s advanced inorganic pigments have brought a splash of colour to concrete architecture through a striking 3D-printed sculpture titled “Duality of Skin and Core”, currently exhibited at the “Time. Space. Existence.” show during the Venice Architecture Biennale. The sculpture is the result of a collaboration between Eindhoven University of Technology’s Assistant Professor Cristina Nan and architect Mattia Zucco, supported by LANXESS and Dutch 3D-printing specialist Vertico.The column-like structure explores architectural experimentation using red and black iron oxide pigments..

Next Story
Infrastructure Energy

GP Eco Solutions Soars After Winning ₹121-Crore Solar Project Order

GP Eco Solutions India witnessed a sharp rise in its stock price, hitting the 5% upper circuit at ₹541.80, following the announcement of a major new project. The company revealed through a stock exchange filing that it had secured an engineering, procurement, and construction (EPC) contract valued at ₹121.29 crore for a solar power project.The contract was awarded by Welkin Renewable India and involves the development of a ground-mounted, grid-connected solar power plant with a total capacity of 24 MWac / 31.67 MWdc. The project, which will be implemented in Punjab, is set to be executed u..

Next Story
Infrastructure Energy

CBDT Notifies IREDA Bonds as Tax-Saving Option for Green Energy

In a significant step to enhance renewable energy financing in India, the Central Board of Direct Taxes (CBDT), operating under the Ministry of Finance, announced that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) would be classified as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961.The notification, which took effect on July 9, 2025, enables investors to claim tax exemptions on long-term capital gains by investing in IREDA bonds. As per Section 54EC, individuals can invest up to ₹50 lakh in these bonds within six months of realizing..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?