Maharashtra Unveils New PPP Policy to Accelerate Infrastructure Development by 2047

Mumbai, October 27 (Daily Kiran) : The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has approved significant structural and procedural amendments to its Public-Private Partnership (PPP) Policy for 2026. This initiative is a crucial step to expedite infrastructure development and streamline project implementation across the state.

The updated framework, which received Cabinet approval, aims to enhance clarity in infrastructure projects, simplify administrative processes, and boost operational efficiency. It aligns with the goals outlined in the “Developed Maharashtra 2047” vision document.

For the fiscal year 2026-27, a provision of ₹200 crore has been allocated for “Viability Gap Funding” (VGF). Following requests for clarity and simplification from the Maharashtra Institution for Transformation (MITRA), a total of 11 key amendments have been incorporated into the policy.

These proposed changes relate to various stages of project development and governance. The policy clearly defines VGF and establishes updated guidelines for developers and project authorities in cases where the policy does not apply.

To reduce administrative hurdles, one level of scrutiny by the Network Planning Group Committee has been removed from the process of granting in-principle approvals for projects. Furthermore, during the approval phases for PPP projects, the Chief Executive Officer of MITRA will now be invited to meetings of the Cabinet Infrastructure Committee.

For projects involving government assistance, land, or premiums up to ₹25 crore, formal approval from the Empowered Committee will be required. For projects valued at ₹25 crore or more, approval must be obtained from the Cabinet Infrastructure Committee based on recommendations from the Empowered Committee.

The policy also enhances provisions related to the Project Development Fund (PDF), departmental project evaluations, development through Special Purpose Vehicles (SPVs), project approvals, and the appointment of Transaction Advisors and law firms. A significant addition to this framework is the introduction of a new policy concept under Clause 13 (Asset Monetization).

This initiative aims to generate revenue by increasing the economic value of public assets, such as land and buildings, which may not be commercially viable under the typical PPP model but can be utilized to meet the objectives of the Developed Maharashtra 2047 vision.

Under the updated PPP guidelines, projects will follow a structured process from inception to completion. The relevant department will conduct preliminary viability studies, public interest assessments, and value-for-money evaluations, with an option to seek assistance from the Project Development Fund. The preparation of technical-economic feasibility reports, draft Requests for Proposals (RFPs), and concession agreements will be done in collaboration with Transaction Advisors and law firms.

Before market launch, necessary initial approvals (EC/CCI) will be obtained, followed by a transparent competitive bidding process evaluated on a single financial criterion. The Empowered Committee will oversee the final approvals, execute concession agreements with selected developers or SPVs, and closely monitor implementation. Additionally, a grievance redressal mechanism will be established for cases exceeding ₹5 crore.