+
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

Continental Expands Assistive ‘OnBoard’ Tech to 100+ BMTC Buses

Continental India, in partnership with the Indian Institute of Technology Delhi, Raised Lines Foundation, and Bangalore Metropolitan Transport Corporation (BMTC), has expanded its smart assistive mobility solution ‘OnBoard’ across more than 100 BMTC buses in Bengaluru. Initially piloted on 25 buses, the solution is now set to be installed in 500 buses by year-end.The expansion was officially announced at the BMTC Central Office during a press conference attended by Shri Ramalinga Reddy, Hon’ble Transport Minister of Karnataka.‘OnBoard’ is a bus-mounted assistive technology designed t..

Next Story
Infrastructure Energy

Himadri PAT Rises 48% in Q1 Amid Global Battery Push

Himadri Speciality Chemical Ltd reported its highest-ever quarterly EBITDA of Rs 234 crore and PAT of Rs 183 crore for Q1 FY26, with profitability up 48% YoY. Revenue stood at Rs 1,100 crore.CMD Anurag Choudhary attributed the gains to operational efficiencies, improved yields, and focus on high-value battery materials. Himadri also revived Birla Tyres with a new brand identity and plans a multi-platform marketing campaign.The firm signed a licensing deal with Australia’s Sicona for SiCx® anode tech, enabling localisation and commercialisation in India. Himadri also invested USD 4.43 millio..

Next Story
Infrastructure Urban

Covestro Develops Fire-Safe Foam for EV Battery Safety

Covestro has introduced Baysafe® BEF, a new flame-retardant polyurethane foam designed to enhance battery safety in EVs and energy storage systems. The foam minimises thermal propagation between cells, reducing fire risk.The launch aligns with China’s GB 38031-2025 battery regulation, effective from July 2026, which sets stringent safety standards. "This innovation represents a significant step toward enabling sustainable mobility through enhanced safety," said Akhil Singhania, Global Head of PU Specialties at Covestro.The foam's lightweight structure and fire resistance meet the needs of g..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?