"The auto unions have also given nod for this," Chavan told reporters after meeting union leaders on Sunday morning.
Auto-rickshaw drivers in the city had protested a recent drive to inspect meters, and gone on a strike, seeking fare hike.
The issue acquired political tones as Maharashtra Navnirman Sena and Shiv Sena sided with passengers. There were some incidents of attacks on rickshaws.
Chavan on Sunday also said that decision on the implementation of 50-paise hike in auto fares in Mumbai will be taken by a committee, specifically appointed for the purpose.
Chavan, who holds the transport portfolio too, said 48,000 permits in the state (28,000 in Mumbai), which have expired, will be revived.
He rejected the demand for fare hike every year, and said that fares would be reviewed every two years. Chavan also made it clear that conditions for getting auto-driver permits, including 15-year domicile and minimum education upto standard eighth, had not been relaxed.