NEW DELHI: The government on Wednesday informed that it has approved the setting up of National Land Monetization Corporation (NLMC) as a wholly-owned government of India company to monetise surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies.
The company will have an initial authorised share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore. The proposal is in pursuance of the Budget Announcement for 2021-22. “With monetisation of non-core assets, the government would be able to generate substantial revenues by monetising unused and under-used assets,” said the government in a statement.
Last year, finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline (NMP). NMP estimates an aggregate monetisation potential of Rs 6 lakh crore through core assets of the central government over the four-year period from FY 2022 to FY 2025.
At present, CPSEs hold a considerable surplus, unused and under-used non-core assets in the nature of land and buildings. For CPSEs undergoing strategic disinvestment or closure, monetisation of these surplus land and non-core assets is important to unlock their value. NLMC will undertake monetisation of these assets. This will also enable productive utilisation of these under-utilised assets to trigger private sector investments, new economic activities, boost the local economy and generate financial resources for economic and social infrastructure.
“NLMC is also expected to own, hold, manage and monetise surplus land and building assets of CPSEs under closure and the surplus non-core land assets of government-owned CPSEs under strategic disinvestment,” the government informed.