Centre sets up National Land Monetisation Corporation
Real Estate

Centre sets up National Land Monetisation Corporation

As per the Economic survey, on Monday, the government has formed a National Land Monetisation Corporation (NLMC) to expedite the monetisation of land and non-core assets of public sector entities.

Yet, Central Public Sector Enterprises (CPSEs) have referred 3,400 acres of land and other non-core assets for monetisation from CPSEs comprising Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), B&R, Bharat Petroleum Corporation Limited (BPCL), BEML Limited, HMT Ltd, Instrumentation Ltd.

Since, the expected skill set to take on the responsibility of management and monetisation of non-core assets in government is limited, Finance Minister Nirmala Sitharaman in 2021-22 Budget had declared establishing a Special Purpose Vehicle (SPV), with capacity and expertise, to conduct the monetisation of the land and other non-core assets efficiently and prudently, in line with international best practices.

In pursuance of the Budget announcement, National Land Monetisation Corporation (NLMC) is being included as a 100% Government of India owned entity with an initial authorised share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore.

Concerning the government's asset monetisation drive, the Survey said there is an aggregate monetisation potential of Rs 6 lakh crore via core assets of the central government over four years from 2021-22 to 2024-25.The leading five sectors comprising railways, roads, power, oil and gas pipelines and telecom estimate for approximately 83% of the aggregate value.

CPSEs have referred 3,400 acres of land and other non-core assets for monetisation, as per the survey. The New Public Sector Enterprise Policy and Asset Monetisation Strategy presented by the government reaffirm its commitment towards privatisation and strategic disinvestment. While the monetisation of core assets is headed by NITI Aayog, the initiative for monetisation of non-core assets has been hitherto driven by the Department of Investment and Public Asset Management (DIPAM). The monetisation of non-core assets envisages unlocking the value of these thus far unused or under-utilised assets and producing returns on the equity that the Government has funded in them.

Image Source

Also read: Nirmala Sitharaman launches National Monetisation Pipeline

As per the Economic survey, on Monday, the government has formed a National Land Monetisation Corporation (NLMC) to expedite the monetisation of land and non-core assets of public sector entities. Yet, Central Public Sector Enterprises (CPSEs) have referred 3,400 acres of land and other non-core assets for monetisation from CPSEs comprising Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), B&R, Bharat Petroleum Corporation Limited (BPCL), BEML Limited, HMT Ltd, Instrumentation Ltd. Since, the expected skill set to take on the responsibility of management and monetisation of non-core assets in government is limited, Finance Minister Nirmala Sitharaman in 2021-22 Budget had declared establishing a Special Purpose Vehicle (SPV), with capacity and expertise, to conduct the monetisation of the land and other non-core assets efficiently and prudently, in line with international best practices. In pursuance of the Budget announcement, National Land Monetisation Corporation (NLMC) is being included as a 100% Government of India owned entity with an initial authorised share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore. Concerning the government's asset monetisation drive, the Survey said there is an aggregate monetisation potential of Rs 6 lakh crore via core assets of the central government over four years from 2021-22 to 2024-25.The leading five sectors comprising railways, roads, power, oil and gas pipelines and telecom estimate for approximately 83% of the aggregate value. CPSEs have referred 3,400 acres of land and other non-core assets for monetisation, as per the survey. The New Public Sector Enterprise Policy and Asset Monetisation Strategy presented by the government reaffirm its commitment towards privatisation and strategic disinvestment. While the monetisation of core assets is headed by NITI Aayog, the initiative for monetisation of non-core assets has been hitherto driven by the Department of Investment and Public Asset Management (DIPAM). The monetisation of non-core assets envisages unlocking the value of these thus far unused or under-utilised assets and producing returns on the equity that the Government has funded in them. Image Source Also read: Nirmala Sitharaman launches National Monetisation Pipeline

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