State approves PPP development of surplus ST land on leases of up to 98 years

The Maharashtra government has taken a major decision to raise earnings from the surplus land of the Maharashtra State Road Transport Corporation (ST). It has approved developing the land under the public-private partnership (PPP) model, with leases of up to 49+49 years, a total of 98 years. The government says this opens the way to regular, long-term income from ST's assets.

A high-level committee has been formed for the process. It is headed by Transport Minister and ST Corporation chairman Pratap Sarnaik. Under the decision, the move will help considerably in strengthening ST's finances, and the land can be put to commercial use in a planned and transparent manner.

According to the government decision, PPP projects can be taken up on several kinds of land. These include land owned by ST, land obtained through acquisition, land transferred from the earlier Road Transport Department, land taken on rental agreements, and land received through gift deeds. A separate tender has been made mandatory for each site.

Viable PPP projects that are in their final stage have also been given certain concessions under the Maharashtra Public-Private Partnership Policy, 2026. The concerned committee's approval will be taken for each project's tender, concession agreement and viable framework. The final tender of every project will also need approval at the Chief Minister's level.

The Subodh Kumar Committee had made recommendations on the lease term. According to the committee, given ST's financial condition, a 90-year lease model with an upfront premium could be more beneficial for the corporation than long rental agreements. The government then approved extending the lease term to 98 years (49+49).

The corporation holds more than 3,500 acres at about 850 locations across the state, much of it in good locations. If the land is developed in a planned manner for commercial, residential, industrial and other commercial uses, the corporation could earn large regular income along with an upfront premium. The corporation will also get a share in commercial complexes, which will bring regular annual income.

Transport Minister Pratap Sarnaik said: "The land owned by the ST Corporation is the corporation's valuable heritage. This land will be used not merely for short-term earnings but to make ST financially strong over the long term. Our main aim is to get the corporation the maximum income from this property through a transparent tender process, proper commercial planning and PPP."

Sarnaik also said: "Financial self-reliance is essential to further strengthen ST's passenger service. The income earned by developing the corporation's surplus land properly will therefore be used to strengthen ST's services and facilities."