Mumbai: The MSRTC has set in motion an ambitious plan to redevelop nearly 1,485 hectares of its land through the public-private partnership (PPP) model, with a focus on generating sustainable revenue and improving the financial health of the state-run transport undertaking. MSRTC has been incurring annual losses of around Rs 591 crore in 2025-26 and the corporation’s staggering accumulated deficit is nearly Rs 12,000 crore.A detailed presentation on the redevelopment plan was made before chief minister Devendra Fadnavis on Monday by senior MSRTC officials. The proposal covers strategically located lands attached to MSRTC bus depots, bus stations, workshops and warehouses across urban, semi-urban and rural areas of the state.Reviewing the proposal, Fadnavis directed officials to adopt a depot-specific approach while undertaking redevelopment. “Separate planning should be carried out considering the commercial potential of each depot,” he said. The chief minister also instructed that revenues generated from commercially viable projects be deposited in an escrow account and subsequently utilised for the redevelopment of less profitable projects and other infrastructure initiatives undertaken by the corporation.MSRTC suffered significant losses in April and May this year. The decline during these two months—traditionally the highest revenue-generating period—was a serious concern in which 21 out of the state’s 31 divisions of the bus corporation were running in losses, sources said.The govt has clarified that ownership of the land being redeveloped will continue to remain with MSRTC. Officials said redevelopment is being examined through a 49-plus-49-year lease model, enabling commercial value addition without transferring ownership of the assets. Fadnavis also directed officials to examine legal aspects relating to possible stamp duty exemptions for such projects and to place proposals regarding incentives and concessions for private developers before the state cabinet for approval.The redevelopment initiative is part of the govt’s broader strategy to create new sources of income for the cash-strapped corporation, an official said. Transport minister Pratap Sarnaik had earlier indicated that commercial development of ST-owned lands was under consideration, given the extensive land bank available with the corporation at key locations across Maharashtra.According to officials, the proposed framework envisages redevelopment through three packages, covering bus stands and depots across the state. Properties are proposed to be classified into A, B and C categories based on location, commercial viability and development potential. Different categories of properties will be bundled together in integrated packages to make projects attractive for private investment while ensuring balanced development.“Monetising these underutilised assets through PPP projects can help strengthen MSRTC’s finances, modernise transport infrastructure and reduce its dependence on govt support in the long run,” the official added.
