The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has given the green light to the Asset Monetisation Policy on Tuesday. This policy is aimed at boosting revenue for Urban Local Bodies (ULBs) in the state. It will enable Municipal Corporations, Municipal Councils, and Nagar Panchayats to utilize their land and properties to create sustainable income streams.
The main objective of this policy is to systematically develop civic-owned real estate in a transparent manner. Eligible assets under this policy include vacant lands, buildings, commercial complexes, markets, and public utility spaces. Maharashtra, with its extensive urban governance network comprising various local bodies, is set to benefit from this framework.
By unlocking the commercial value of underutilised assets, the state aims to enhance financial autonomy and fund public infrastructure projects. The policy seeks to reduce the dependence of local bodies on government grants and allocate the generated revenue towards essential civic amenities like water supply, sanitation, roads, healthcare, education, and public transport.
To ensure efficiency and value, ULBs are allowed to adopt Public-Private Partnership (PPP) models and other development frameworks. The state government has mandated that all monetisation processes must be competitive, transparent, and in the public interest. The Asset Monetisation Policy will be effective until July 31, 2031, or until a revised framework is introduced.
This strategic move is expected to revolutionize urban governance in Maharashtra, providing the necessary financial resources for modern infrastructure development. The Cabinet’s decision follows the Sixth Maharashtra Finance Commission’s report, which proposes an increase in the devolution of the State’s Own Tax Revenue (SOTR) to local bodies, emphasizing financial decentralization and structural reform.
