Maharashtra Cabinet Clears 11 Amendments in PPP Policy for Projects
Mumbai, October 27: The Maharashtra cabinet, led by Chief Minister Devendra Fadnavis, has cleared 11 significant amendments to the state's Public-Private Partnership Policy 2026. The decision was taken at Tuesday's cabinet meeting and is intended to make infrastructure projects move faster and more efficiently.
The revisions follow the cabinet's approval of the updated framework. The government says the changes will bring more transparency to infrastructure projects, reduce red tape, and strengthen overall administrative efficiency.
The policy is anchored in point 100 of the 'Viksit Maharashtra 2047' vision document, which sets out the state's long-term development priorities.
What Has Changed
The government has allocated Rs 200 crore for Viability Gap Funding (VGF) in the financial year 2026-27. The amendments were made after the Maharashtra Institution for Transformation (MITRA) demanded greater clarity and simplification in the policy.
VGF now has a clear definition in the policy document. The updated rules also set out ownership and risk arrangements between developers and project authorities in cases that fall outside the scope of the policy.
Speeding Up Approvals
One layer of examination by the Network Planning Group committee has been removed from the in-principle approval process. This step is expected to reduce delays caused by administrative hurdles.
During the approval phases of PPP projects, MITRA's CEO will now be invited to Cabinet Infrastructure Committee meetings. Projects that include government support, land, or a premium up to Rs 25 crore will need formal approval from the Empowered Committee.
For projects of Rs 25 crore or above, clearance from the Cabinet Infrastructure Committee (CCI) will be required, based on the Empowered Committee's recommendations.
Improved Project Framework
Several areas have been refined, including Project Development Fund (PDF) provisions, departmental project evaluation, development through Special Purpose Vehicles (SPVs), project approvals, and the appointment of Transaction Advisors and law firms.
Asset Monetisation Concept
A key feature of the framework is a new policy concept under Clause 13, dealing with asset monetisation. Under this, public assets such as land and buildings will be used to generate revenue by increasing their economic value.
These assets may not be viable under the standard PPP model, but they can still be used to meet the objectives of the Viksit Maharashtra 2047 vision.
Stages of Implementation
Under the updated PPP guidelines, every project will follow a structured process from beginning to end. The concerned department will conduct a preliminary feasibility study, public interest assessment, and value-for-money evaluation. The option of support from the Project Development Fund will also be available.
Techno-economic feasibility reports, draft RFPs, and concession agreements will be developed together with transaction advisors and law firms.
Before going to the bidding stage, initial clearances such as EC and CCI approvals must be obtained. The bidding process will be competitive and transparent, and bids will be assessed on a single financial criterion.
Final approval, the signing of concession agreements with selected developers or SPVs, and close monitoring of implementation will be handled by the Empowered Committee. A grievance redressal system will also be set up for cases involving amounts above Rs 5 crore.