MSRTC shifts gears with 98-year leasing policy for bus stands
MUMBAI: Looking to steer itself out of the red, the Maharashtra State Road Transport Corporation (MSRTC) is rolling out a fresh plan to give its bus stands a makeover across the state. The plan is to increase the period for which it leases its bus stands under the public-private-partnership (PPP) model, from 60 years to 98 years, thus creating a stable revenue stream.
To sweeten the deal, the department also wants to offer private players redevelopment rights in exchange for a share of this space, instead of charging them a premium for the right to commercially exploit the leased area. The corporation would then lease this space, earning consistent revenue.
MSRTC has been the backbone of intra-state road transport, offering affordable rates for the last 70 years. But the concessions it offers have come at a huge cost. The corporation's accumulated losses mounted to ₹10,300 crore during this period.
To improve its revenue, MSRTC rolled out the PPP model to lease its bus stands – it has 598 bus stands and 251 bus depots across the state – 20 years ago. The lease period then was 30 years and 45 bus stands were developed.
In October last year, the state government increased the lease period to 60 years, to develop another 72 bus stations under the PPP model. Now, the transport department has put this proposal on hold, so that a fresh tender can be prepared, further extending the lease period to 98 years.
The fresh proposal was submitted to the state revenue department in early June. 'The first lease period would be for 49 years, which will be extended by another 49 years,' revealed an official with the transport department.
Significantly, one of the core terms of the lease has been amended. Going forward, contracts will be awarded on the basis of the 'share in commercial property' developed by private parties. Under the earlier regime, MSRTC used to charge a premium allocating the bus stand for redevelopment. Accordingly, the corporation earned ₹32 crore in direct payment over the last 20 years, and it received upgraded bus stands that cost ₹23 crore to revamp.
Explaining the new model, an official with the transport department said, 'We have decided to award contracts on the basis of share in commercial property. So, for instance, if a private developer constructs 1,000sq ft of space after redevelopment, they would offer a minimum 30% of that space to MSRTC. The corporation would, in turn, lease that commercial space, ensuring monthly income during the lease period. Parties that offer the greatest share in commercial space will be awarded contracts for redevelopment under the PPP model.'
Transport minister Pratap Sarnaik said, 'We are already giving the land on lease to a private developer for 60 years. As per the practice in the real estate market, a 98-year lease will generate more revenue compared to a lease of 60 years. Revenue would be earned over a longer period for MSRTC.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
2 days ago
- Hindustan Times
MSRTC shifts gears with 98-year leasing policy for bus stands
MUMBAI: Looking to steer itself out of the red, the Maharashtra State Road Transport Corporation (MSRTC) is rolling out a fresh plan to give its bus stands a makeover across the state. The plan is to increase the period for which it leases its bus stands under the public-private-partnership (PPP) model, from 60 years to 98 years, thus creating a stable revenue stream. To sweeten the deal, the department also wants to offer private players redevelopment rights in exchange for a share of this space, instead of charging them a premium for the right to commercially exploit the leased area. The corporation would then lease this space, earning consistent revenue. MSRTC has been the backbone of intra-state road transport, offering affordable rates for the last 70 years. But the concessions it offers have come at a huge cost. The corporation's accumulated losses mounted to ₹10,300 crore during this period. To improve its revenue, MSRTC rolled out the PPP model to lease its bus stands – it has 598 bus stands and 251 bus depots across the state – 20 years ago. The lease period then was 30 years and 45 bus stands were developed. In October last year, the state government increased the lease period to 60 years, to develop another 72 bus stations under the PPP model. Now, the transport department has put this proposal on hold, so that a fresh tender can be prepared, further extending the lease period to 98 years. The fresh proposal was submitted to the state revenue department in early June. 'The first lease period would be for 49 years, which will be extended by another 49 years,' revealed an official with the transport department. Significantly, one of the core terms of the lease has been amended. Going forward, contracts will be awarded on the basis of the 'share in commercial property' developed by private parties. Under the earlier regime, MSRTC used to charge a premium allocating the bus stand for redevelopment. Accordingly, the corporation earned ₹32 crore in direct payment over the last 20 years, and it received upgraded bus stands that cost ₹23 crore to revamp. Explaining the new model, an official with the transport department said, 'We have decided to award contracts on the basis of share in commercial property. So, for instance, if a private developer constructs 1,000sq ft of space after redevelopment, they would offer a minimum 30% of that space to MSRTC. The corporation would, in turn, lease that commercial space, ensuring monthly income during the lease period. Parties that offer the greatest share in commercial space will be awarded contracts for redevelopment under the PPP model.' Transport minister Pratap Sarnaik said, 'We are already giving the land on lease to a private developer for 60 years. As per the practice in the real estate market, a 98-year lease will generate more revenue compared to a lease of 60 years. Revenue would be earned over a longer period for MSRTC.'
Time of India
3 days ago
- Time of India
New boat clubs may come up in PPP mode
Indore: Madhya Pradesh Tourism Development Corporation (MPTDC) is planning to add new boat clubs in public private partnership (PPP) mode in the state to enhance water activities to attract tourist influx. The new locations identified for establishing new boat clubs are Kukshi in Dhar, Ramaua Dam in Gwalior and in Vidisha. Another proposed boat club at Gambhir dam in Ujjain is expected to be operational before Simhastha 2028. Sheo Shekhar Shukla, principal secretary of Tourism and Culture said, "We are creating many new boat clubs using PPP models in the state. The idea is to add more amenities and develop water activities in the state which has a lot of scenic places to develop for water activities. This will attract tourists and generate high revenues for the govt." Corporation runs 14 boat clubs in the state. "We have floated proposals for starting new boat clubs at around 3-4 places in the state. At Kukshi, the plan is to introduce speed boat, pedal boats and other water activities," said commander Rajendra Nigam (Retd.), Adviser Water Tourism, MPTDC. He said that the tourism department is also planning to develop the vicinity near Gambhir Dam into a weekend getaway by improving infrastructure and setting up a boat club. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo The proposed boat club at Gambhir Dam estimated to be develop at a cost of Rs 16 crore will have electrical boats, shikaras and a mini cruise. The tourism corporation has also proposed to establish a new boat club at Omkareshwar to further expand the range of tourist attractions in Indore region that has witnessed a remarkable surge in tourists footfall in the past two-three years mostly because of the spike in religious tourism.
Time of India
4 days ago
- Time of India
UP govt to invest ₹700 cr in EV manufacturing hub in Kanpur
The Uttar Pradesh government on Monday announced plans to develop Kanpur into a major electric vehicle (EV) manufacturing hub with a proposed investment of ₹700 crore under the Kanpur Metropolitan Development Vision - 2030, PTI reports. The Uttar Pradesh State Industrial Development Authority (UPSIDA) will set up a state-of-the-art EV park across 500 acres near Bhimsen, strategically located along the Dedicated Freight Corridor (DFC). The project will be implemented under the Public-Private Partnership (PPP) model, the government said in an official statement. 'The initiative aims to position Kanpur as a key player in India's EV ecosystem by bolstering the local supply chain and encouraging indigenous manufacturing,' the statement added. What does it include? The upcoming park will host units for manufacturing electric motors, chassis, steel components, and lithium-ion cells. It will also include facilities for assembling batteries, chargers, controllers, and other electronic parts critical to EV production. A dedicated research and development (R&D) centre will be a core component of the project, with a focus on driving innovation and supporting the development of advanced EV technologies. The centre is expected to contribute to both regional growth and global EV advancements. To further support the ecosystem, the state is also developing an integrated EV components cluster within the park, aimed at enabling small and medium enterprises (SMEs), startups, and local entrepreneurs to actively participate in the EV value chain. Officials noted that the park's proximity to the DFC will offer a logistical edge, enhancing connectivity for the transportation of raw materials and finished goods through robust rail and road networks. The government expects the project to create significant employment opportunities, boost local entrepreneurship, and contribute to Uttar Pradesh's overall economic growth.
