Maharashtra reservoir land lease 2025/sbkinews.in
The Maharashtra government is all set to launch a landmark initiative to lease out land near reservoirs across the state, starting from early October 2025. The ambitious move aims to generate an estimated Rs 500 crore per year in revenue by opening up waterfront lands around 20 major dams for lease under a public-private partnership (PPP) model.
This long-awaited policy will not only boost state coffers but also encourage tourism and sustainable development in scenic areas surrounding the dams. The Water Resources Department, led by Minister Radhakrishna Vikhe Patil, is finalizing details and preparing to float the first bid document soon.
Background and Policy Details
The policy is based on a Government Resolution (GR) initially issued in June 2019 during the earlier tenure of Chief Minister Devendra Fadnavis. The resolution envisages monetizing unused government land near dams, which often includes dilapidated buildings such as hotels, observation bungalows, and staff quarters.
However, the project was temporarily shelved due to political changes and the COVID-19 pandemic. Now, with fresh political will and leadership, the initiative has regained momentum and is expected to revive Maharashtra’s tourism and water resource development.
Maharashtra reservoir land lease
The Public-Private Partnership (PPP) Model
The leasing will operate on a 49-year lease agreement basis under a PPP model, allowing private developers and investors to build, operate, and maintain various infrastructure projects on the leased land. This approach provides the government a steady revenue stream while enabling quality private investment and innovation in the region.
Potential projects include:
Camping and caravanning sites
Ropeway services
Exhibition and conference centres
Hill stations and eco-tourism resorts
Water sports facilities like kayaking and sailing
The GR enforces strict norms to preserve dam safety and ecology. Developers must maintain a minimum distance of 300 meters from the dam wall, acquire police clearance, and take full liability for any mishaps.
Maharashtra reservoir land lease
Economic and Tourism Potential
Maharashtra boasts over 138 major dams, 255 medium dams, and 2,862 minor irrigation projects, many located in the picturesque Sahyadri and Satpura ranges. The state’s reservoir and dam lands remain underutilized despite their strategic importance.
Officials believe this leasing policy can transform Maharashtra into a premier destination for rural tourism and adventure sports, generating local employment and business opportunities.
With waterfront properties attracting private villa renters already, formalizing these areas will bring more tourists, better infrastructure, and greater overall economic activity.
Existing Infrastructure and Renovation Plans
Many rest houses, observation huts, and staff colonies near dams are currently in disrepair. The policy includes renovating these assets to enhance visitor experiences while preserving their heritage value.
The Water Resources Department plans to prioritize sustainable tourism that complements the natural environment and local communities. The Build-Operate-Transfer (BOT) model may also be applied for larger projects, ensuring government control returns after agreed periods.
Maharashtra reservoir land lease
Security and Environmental Considerations
Given the critical role of dams in water storage and electricity generation, security remains a paramount concern. The policy mandates safety clearances, prohibits development within sensitive zones, and requires developers to adhere to stringent environmental standards.
Developers must ensure that tourism and infrastructure growth do not compromise dam safety or disrupt wildlife habitats. An environmental impact assessment will be a prerequisite for all major projects.
Political and Administrative Support
Water Resources Minister Radhakrishna Vikhe Patil has been actively involved in steering the policy reinstatement. After discussions with Chief Minister Devendra Fadnavis and other officials, the policy is ready for implementation.
The water resources department has assured stakeholders that the tender process will be transparent and aimed at attracting credible investors.
Challenges and Future Outlook
While the leasing policy promises substantial economic benefits, successful implementation will require addressing challenges such as:
Balancing commercial interests with ecological preservation
Ensuring fair bidding and transparent allocation
Facilitating cooperation among multiple government agencies
Engaging local communities and ensuring their participation
If executed well, the policy could serve as a model for land monetization in other Indian states with significant water resources.
Maharashtra reservoir land lease
Conclusion
Maharashtra’s plan to lease reservoir lands marks a strategic effort to harness the untapped potential of state-owned assets. With a target of generating Rs 500 crore annually, the initiative is poised to boost tourism, infrastructure development, and state revenues.
Starting early October 2025, private players will have the unique opportunity to invest in Maharashtra’s scenic dam areas, creating new leisure destinations while contributing to the state’s economic growth.
