Maharashtra Cabinet Greenlights Comprehensive PPP Policy and Rs 200 Crore Infrastructure Fund
In a significant move aimed at accelerating infrastructure development, the Maharashtra state cabinet, on Tuesday, gave its formal approval to a new Public-Private Partnership (PPP) policy. This policy establishes a clear administrative framework for project approvals and financial support, designed to attract private investment and ensure timely completion of critical infrastructure initiatives across the state.
Structured Approval Process for Infrastructure Projects
The newly approved policy introduces a tiered system for project clearance, based on financial scale. Projects valued at more than Rs 25 crore will require approval from a cabinet sub-committee dedicated to infrastructure. This high-level committee will be chaired by Chief Minister Devendra Fadnavis, ensuring direct oversight for major undertakings.
Conversely, projects with a cost below Rs 25 crore will be reviewed and approved by a separate committee. This committee will be led by the state's Chief Secretary, streamlining the process for smaller-scale infrastructure developments and reducing bureaucratic delays.
Financial Backing and Institutional Support
To further incentivize private sector participation, the cabinet has sanctioned the creation of a pooled feasibility gap fund worth Rs 200 crore. This dedicated fund is intended to bridge financial viability gaps in PPP projects, making them more attractive to investors and ensuring their economic feasibility.
The cabinet also approved the establishment of specialized units to manage the PPP framework. A central PPP unit will be set up under the state planning department, with additional units created in other government departments as needed. Furthermore, a dedicated PPP cell will be established within the Maharashtra Institute for Transformation (MITRA), focusing on research, capacity building, and policy implementation support.
Clarity for Ongoing Projects and Long-Term Vision
The policy provides specific guidance for projects already underway. All ongoing infrastructure projects must be completed strictly in accordance with the terms and conditions outlined in their existing concession agreements and tender documents. This ensures contractual obligations are honored and prevents disruption to current development efforts.
This policy advancement aligns with the broader Maharashtra 2047 Vision Document, which was approved by the cabinet in its meeting on October 28, 2025. This ambitious vision outlines 100 key initiatives with the primary goal of elevating the state's economy to a one trillion dollar milestone by the year 2029.
Driving Economic Growth Through Strategic Partnerships
State officials emphasized that the new PPP policies are crucial for mobilizing the necessary capital and skilled manpower required for large-scale infrastructure development. The efficient use of resources through the PPP model is seen as essential for implementing the numerous projects already in progress and those planned for the future.
The establishment of a clear administrative framework is expected to provide much-needed structure, ensuring that infrastructure projects are not only initiated but also completed in a timely manner. This strategic move is projected to give a substantial boost to the state's overall economic growth, creating jobs and improving public amenities through enhanced public-private collaboration.
