Nine Central Public Sector Enterprises (CPSEs) have identified 3,479 acres of surplus land area and building assets for monetisation by National Land Monetization Corporation (NLMC).
Minister of Finance, Nirmala Sitharaman, told the media that NLMC is a wholly-owned government entity. Moreover, it has an initial authorised share capital of Rs 5,000 crore and a paid-up share capital of Rs 150 crores for the monetisation of surplus land and building assets. She said that NLMC would be administered by a Board of Directors, including seven government officials and six non-government or private sector. The Board will include senior government officials and eminent professionals in real estate, banking, investment banking, construction, legal and related fields. The CPSEs assets consist of core assets used in the operation of CPSEs and non-core assets in the form of surplus, unused or under-used land and buildings with no clear future and present plan for optimal use. NLMC will own, hold, manage and monetise land and building assets of CPSEs under closure, and surplus land and buildings of CPSEs under strategic disinvestment. It will also suggest and support the monetisation of surplus land assets of demerged companies holding surplus land and other CPSEs. The corporation will also identify surplus land and building assets to create an inventory for monetisation in consultation with CPSEs and other government agencies. The Minister said that asset monetisation would be carried out through a transparent and competitive market-driven process. Asset monetisation requires a range of specialised skills and expertise, like due diligence, valuation, investment, banking, land management, etc., which is unavailable within the government sector. NLMC would be a lean organisation and will hire professionals from the private sector. For attracting and retaining experienced professionals from the private sector, the Board will have the flexibility to lay down the criteria for selecting the professionals. Image Source
