National Land Monetisation Corporation (NLMC)

The Union Cabinet approved the setting up of the National Land Monetisation Corporation (NLMC) to monetize surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other agencies linked to the government

Central Public Sector Enterprises (CPSEs)

These are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more As of 31/03/2020, there were 366 CPSEs (excluding insurance companies)

What is NLMC

1) NLMC is being formed with an initial authorized share capital of Rs 5,000 crore and paid-up capital of Rs 150 crore

2) the government will appoint a chairman to head the NLMC through a merit-based selection process and hire private sector professionals with expertise

3) the NLMC will undertake monetization of surplus land and building assets of CPSEs as well as government agencies

Function of NLMC

1) NLMC will own, hold, manage and monetize surplus land and building assets of CPSEs under closure and surplus non-core land assets of government-owned CPSEs under strategic disinvestment

2) this will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of government-owned CPSEs, the statement said

3) NLMC will undertake surplus land asset monetization as an agency function, and assist and provide technical advice to the Centre in this regard

4) the NLMC board will comprise senior Government officers and eminent experts, while its chairman and non-government directors will be appointed through a merit-based selection process, the statement said

5) the corporation will have minimal full-time, hired directly from the market Inna contract basis

Stipulated tasks of NLMC

1) CPSEs have referred around 3,400 acres of land and other non-core assets to the department of investment and public asset management (DIPAM) for monetization

2) Monetisation of non-core assets of MTNL, BSNL, BPCL, BEML, HMT, is currently at various stages of the transaction, as per the latest data in the economic survey 2021-22

Significance of NLM

1) the government would be able to generate substantial revenues by monetizing unused and under-used assets

2) the new corporation will also help carry out monetization of assets belonging to public sector firms that have closed or are lined up for a strategic sale

Asset Monetisation

It is the process of creating new sources of revenue for the government and its entities by unlocking the economic value of unutilized or underutilized public assets

National Monetisation pipeline (NMP)

NMP envisages an aggregate Monetisation potential of Rs 6 Lakh crore through the leasing of core assets of the Central government in sectors such as roads, railways, power, oil and gas pipeline, telecom, civil aviation etc, over a four-year period (FY 2022-25)

Compiled by

Avinash Kulkarni

Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer