Overview

• The state cabinet formally extended lease tenures for MSRTC’s surplus lands from 60 to 98 years, split into an initial 49-year term renewable for another 49 years under existing policy norms.
• Officials say the longer leases are designed to enhance the commercial viability of public-private partnership projects and secure higher upfront premiums after tepid uptake of earlier lease terms.
• An expert committee’s recommendation for near-century tenures influenced the shift, aligning MSRTC’s framework with other public bodies that commonly offer 99-year leases.
• The policy update is expected to accelerate redevelopment of bus terminals and depots, improving urban mobility infrastructure and expanding MSRTC’s non-fare revenue streams.
• In parallel, the cabinet approved clear allotment guidelines for narrow, irregularly shaped and landlocked government plots, granting them to adjoining holders to regularize urban land ownership.