Maharashtra invites realty firms to develop 13K acres of MSRTC land

Maharashtra will lease 13,000 acres of MSRTC land in key cities for residential and commercial projects under the build-operate-transfer model to boost revenue and modernise facilities

Maharashtra has invited real estate companies to develop commercial and residential premises on 13,000 acres owned by its bus corporation across the state. Land parcels of the Maharashtra State Road Transport Corporation (MSRTC) will be developed under public-private partnerships on a build-operate-transfer (BoT) basis. 

The government will issue about 150 tenders next month, said Pratap Sarnaik, transport minister and chairperson of MSRTC, at the fourth edition of 'Homethon 2025', a three-day property exhibition organised by Naredco Maharashtra in Mumbai on Friday. 

MSRTC owns land parcels in prime locations across the Mumbai Metropolitan Region (MMR), including Mumbai Central, Kurla, Vidyavihar, Borivali, Chinchbunder (South Mumbai), and Thane. It also has land in Pune, including Swargate and Sangvi, and in Nashik and Nagpur. 

 

The minister stated that the land lease period will be 98 years. “In order to develop these lands and the bus depots, the Government has decided that these bus depots will be given on a long - term lease of 98 years by increasing the period from earlier 30 years. These ST Bus Depots will be developed as Bus Ports; the way they have been developed in Gujarat,” he added. 

Developers will rent out commercial areas such as offices, hotels, shopping centres, and retail outlets, while also building hospitals on district-level plots and facilities for MSRTC. The government plans to replace bus depots with bus courts. 

MSRTC will sanction development plans under a single window to ease approvals from various government entities. Its technical team will also be strengthened. 

Developers will be granted floor space index (FSI) according to the Unified Development Control and Promotion Regulations (UDCPR). Selection will depend on the premium offered by the developer.

 

UDCPR is a standard set of regulations framed by the government of Maharashtra.

 

Rajan Bandelkar, vice-chairperson of Naredco and managing director of Raunak Group, said: “The land parcels are in prime locations. It’s a great opportunity for developers.”

 

MSRTC also has significant land banks in tourist destinations such as Lonavala-Khandala and Mahabaleshwar, which may come under the ambit of the new UDCPR, providing adequate FSI for real estate development.

 

Accumulated losses of MSRTC rose to Rs 10,324 crore in the financial year 2024 (FY24) from Rs 4,603 crore in FY19. The state-owned body has managed to post a profit in only eight of the past 45 fiscal years, according to a white paper released in June.

 

Earlier, Sarnaik had said the possibility of the corporation recovering from its heavy losses soon was very slim, but efforts were on to improve its financial condition. He had announced the induction of more buses and measures to boost revenue, according to PTI.