An inter-ministerial group (IMG) has recommended the monetisation of surplus land and building assets worth over Rs 1,100 crore belonging to Central Public Sector Enterprises (CPSEs), marking a step forward in the government's efforts to unlock the value of underutilised public assets.
The group, chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT), will submit its recommendations to the Cabinet-delegated Alternative Mechanism (AM) for approval and further clearances. Monetisation activities will begin after the necessary approvals are secured and will follow prescribed procedures.
The exercise will be facilitated by the National Land Monetization Corporation (NLMC), the government's specialised agency for monetising surplus land and non-core assets of CPSEs and other government entities.
Following the requisite approvals, the process will involve asset valuation, due diligence, transaction structuring and competitive price discovery in coordination with the concerned ministries and asset-owning enterprises.
"The initiative reinforces the Government of India's commitment to efficient public asset management, transparent and value-maximising monetisation, and productive utilisation of surplus assets to support investment and economic development," the Finance Ministry said in a statement.
The recommendations are part of the government's broader efforts to unlock the economic value of surplus public sector land and buildings and put them to productive use.
NLMC is a wholly owned government company under the administrative control of the DPE in the Finance Ministry. It was set up following the announcement in the Union Budget 2021-22 and is mandated to facilitate the monetisation of surplus land and other non-core assets of CPSEs and government entities through professional transaction advisory services and transparent competitive processes.