Maharashtra Cabinet Unveils New PPP Policy For Growth
The Maharashtra government has approved a new Public-Private Partnership (PPP) policy that restructures how infrastructure projects are cleared and seeks to accelerate capital deployment across the state’s growth corridors. Under the revised framework, projects above ₹25 crore — broadly encompassing major roads, utilities, social infrastructure and urban systems — will now require vetting by a high-level infrastructure committee, led by the chief minister, while smaller proposals will be handled by a chief secretary-led panel. This policy shift aims to deepen private capital participation in public infrastructure while tightening governance on large-scale investments.
The policy also includes the establishment of a dedicated PPP unit within the state planning department, with sector-specific cells and a nodal PPP cell at the Maharashtra Institute for Transformation (MITRA). A pooled feasibility gap fund of ₹200 crore has been sanctioned to support projects that might otherwise struggle to attract private bidders. Officials describe these institutional layers as designed to strengthen project appraisal, improve risk sharing and reduce implementation bottlenecks — long-standing challenges for infrastructure delivery in India’s second most populous state.Analysts say the move is significant for urban and regional development because it formalises a pipeline and approval path for partnerships that can underpin everything from urban transit to water, sanitation and logistics infrastructure. Urban planners underscore that an integrated PPP policy can help align state objectives on mobility, economic inclusion and climate resilience — provided it’s calibrated to ensure equitable risk sharing and safeguards public interest in essential services. Without such balance, critics argue, private participation can skew towards financially lucrative sectors at the expense of socially necessary but less profitable public goods.
The state’s Vision 2047, which outlines an ambition to grow Maharashtra’s economy to US $1 trillion by 2029, frames this PPP policy as a mechanism to mobilise skilled manpower, enhance technical capacity and de-risk large projects. A senior state official pointed out that many existing PPP frameworks lacked standardized decision paths, leading to protracted delays and cost overruns. The new policy attempts to rectify these shortcomings by institutionalising clear review benchmarks and pre-qualified institutional support.However, this restructuring arrives amid other bold cabinet decisions that collectively signal an expansive infrastructure agenda. In the same session, the cabinet cleared a land acquisition policy to accelerate the strategic “Third Mumbai” project linked with the Mumbai Trans Harbour Link, and also approved raising a significant loan for the Purandar airport land purchase near Pune — moves that together underscore the state’s focus on connectivity, investment and planned urbanisation.
For Maharashtra’s cities and industries, the PPP policy could unlock faster project rollout and strengthen investor confidence. But its success will hinge on transparent governance, rigorous project preparation and inclusive frameworks that extend benefits across urban and peri-urban communities rather than concentrating value in marquee developments alone.
