On Wednesday, the Union Cabinet authorized the creation of the National Land Monetisation Corporation (NLMC). This is a wholly-owned government of India firm that is formed to expedite the monetization of public sector land and non-core assets. The Centre provided an initial authorized share capital of Rs 5,000 crore and a paid-up share capital of Rs 150 crore for the establishment of NLMC.
The National Land Monetisation Corporation would monetize surplus land and construction assets of Central Public Sector Enterprises (CPSEs) and other government entities. According to the Eco Survey, CPSEs have recommended 3,400 acres of land and other non-core assets for monetization from CPSEs like as Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), B&R, Bharat Petroleum Corporation Limited (BPCL), BEML Limited, and HMT Ltd.
Monetization of non-core assets is releasing the value of these previously unutilized or underutilized assets in order to produce returns on the equity invested by the government in them. According to prior reports, the new firm would serve as an asset manager for properties controlled by the Union government and central government companies. To support land monetization, there will be a CEO and a technological staff.
According to the article, the firm will be permitted to obtain cash from the equity market on the basis of the value of its leased assets. The company will include members from the finance ministry, the department of public enterprises, the ministry of housing and urban affairs, and independent directors from the financial and real estate industries.
The Economic Survey 2022 provided a glance of the central government’s asset monetization strategy, stating, “There is an aggregate monetization potential of Rs 6 lakh crore through core assets of the central government over a four-year period from 2021-22 to 2024-25.” The top five industries, which include roads, trains, power, oil and gas pipelines, and telecommunications, contribute almost 83 percent of the total value.
