Maharashtra has opened a major opportunity for real estate developers by inviting proposals to develop 13,000 acres of land owned by the Maharashtra State Road Transport Corporation (MSRTC) across key cities in the state. The initiative aims to modernize facilities, boost revenue for the corporation, and promote urban infrastructure through public-private partnerships under the build-operate-transfer (BoT) model.
Transport Minister and MSRTC Chairperson Pratap Sarnaik announced at the NAREDCO Maharashtra Real Estate Forum 2025 in Mumbai that the government will issue around 150 tenders next month. The land parcels are located in prime areas across the Mumbai Metropolitan Region (MMR), including Mumbai Central, Kurla, Vidyavihar, Chinchbunder, and Thane. In Pune, key parcels include Swargate and Sangvi, with additional land in Nashik and Nagpur. Tourist destinations such as Lonavala-Khandala and Mahabaleshwar are also part of the potential development zones.
The lease period for these projects is set at 98 years, allowing developers long-term planning flexibility. Under the proposed model, developers will be responsible for constructing residential and commercial buildings, including offices, hotels, shopping centres, and retail outlets. District-level plots will be allocated for hospitals and MSRTC-related infrastructure. Existing bus depots are expected to be replaced by modern bus courts, enhancing operational efficiency.
To streamline approvals, MSRTC will implement a single-window sanction system, simplifying processes across multiple government departments. The technical team of MSRTC will also be strengthened to oversee project implementation. Developers will receive floor space index (FSI) allocations as per the Unified Development Control and Promotion Regulations (UDCPR), which provide standardized development norms. Selection of developers will be based on the premium offered for the land parcels, ensuring optimal value for the state.
Rajan Bandelkar, vice-chairperson of NAREDCO and managing director of Raunak Group, highlighted the strategic importance of the initiative, stating that the land parcels are located in prime, high-demand areas and present a significant opportunity for developers to participate in large-scale urban development.
MSRTC’s accumulated losses have risen sharply in recent years, from ₹4,603 crore in FY19 to ₹10,324 crore in FY24. The corporation has only recorded profits in eight of the last 45 financial years, according to a white paper released in June 2025. While the prospect of a swift financial turnaround remains limited, Sarnaik indicated that the government is taking steps to improve revenue generation, including induction of additional buses and monetization of underutilized land assets.
The initiative is expected to accelerate residential and commercial real estate growth in Maharashtra, particularly in urban and peri-urban locations with high infrastructure potential. By leveraging MSRTC’s extensive land banks, the government aims to integrate city planning, transportation modernization, and commercial expansion under a single framework, while creating opportunities for private investment.
The development of MSRTC land under the BoT model represents a strategic attempt to modernize public transport infrastructure while generating additional revenue streams for the state. It also aligns with broader urbanization trends in Maharashtra, promoting planned housing, commercial activity, and institutional facilities.
The move reflects the state’s efforts to balance public utility with real estate development, offering developers long-term opportunities in prime urban locations. With regulatory clarity, standardized FSI norms, and single-window approvals, the initiative is poised to reshape urban landscapes in Mumbai, Pune, and other cities, supporting both commercial and residential expansion.
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