Mumbai, Sep 23 (IANS): The Maharashtra Cabinet during a meeting chaired by Chief Minister Eknath Shinde on Monday gave its approval to the state-run Maharashtra State Road Transport Corporation (MSRTC) to give 39 land parcels for commercial development on a build, operate and transfer (BOT) basis on lease for the period of 60 years instead of previously proposed 30 years.

The available floor space index (FSI) will be allowed to be used for commercial development except five FSIs which will be used for carrying out development of depots and other facilities by the MSRTC. As per Monday's Cabinet decision, one FSI can be used for residential and commercial use under the BOT policy

According to a senior minister, some of the Cabinet ministers objected to a provision of giving land parcels on lease for 90 years, citing that the government provides plots to the educational institutes, which invests crores of rupees to build infrastructure and put in place various amenities, for 30 years. Thereafter, the Cabinet cleared giving MSRTC's land parcels for 60 years' lease expecting the huge potential of exploitation considering the rapid urbanisation.

The Cabinet gave approval to exempt MSRTC from paying 50 per cent of the profit earned by it from the commercial use of the land parcels. MSRTC has been given a green signal to finalise bids under BOT basis.

The Transport Department, which moved the proposal, said the MSRTC during 2008 and 2016 had completed projects on BOT basis on 45 land parcels. The MSRTC earned Rs 32 crore towards premium and also the construction of 29,780 sq mt for its use.

MSRTC was proposed to construct 13 modern bus depots in 2016, but it received bids for only Panvel and Chhatrapati Sambhajinagar.

"One of the hurdles was giving such parcels for a 30 year lease. Therefore, the Cabinet has cleared giving such plots for 60 year lease so that the residential and commercial exploitation can be possible and financially viable," said another minister.

The Cabinet approval for a revised BOT policy for land use by MSRTC came days after Maharashtra Institution for Transformation (MITRA), which is established by the state government on the lines of NITI Aayog, in its roadmap to $1 trillion economy, has suggested the monetisation of idol public assets to boost the capital formation.