Cabinet approves setting up of National Land Monetization Corporation (NLMC)

Cabinet approves setting up of National Land Monetization Corporation (NLMC)

NLMC to undertake monetization of surplus land and building assets of CPSEs and other Government agencies

The Union Cabinet on 9th March 2022 has approved setting up of National Land Monetization Corporation (NLMC) as a wholly owned Government of India company with an initial authorized share capital of ₹ 5,000 crore and paid-up share capital of ₹ 150 crore. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha.

The Minister stated that NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. The proposal is in pursuance of the Budget Announcement for 2021-22, the Minister stated.

NLMC, the Minister listed out, has the following objectives:

a) To undertake professional and orderly monetization of land and other non- core assets referred to it.

b) To own, hold, manage and monetize land and building assets of CPSEs under closure and surplus land and buildings of 100% GoI owned CPSEs under strategic disinvestment.

c) To advise and support monetization of surplus land assets of

1. Demerged companies holding surplus land

2. Other CPSEs

d) To advise and assist government departments, statutory bodies/ authorities, autonomous bodies, corporations, etc. on monetisation of surplus and under- utilized non-core assets.

e) To identify surplus land and building assets to create an inventory for monetization in consultation with CPSEs/other government agencies.

f) to build a capable organisation with skill and competencies to enable speedier and efficient monetisation which can generate maximum value from government assets.

g) To act as a repository of best practices in land monetization, assist and provide expert technical advice to DPE / DIPAM /Government of India in implementation of asset monetisation program.

The Minister further stated that NLMC would be administered by a Board of Directors. The proposed Board structure envisages a mix of senior government officials and eminent professionals in the field of real estate, banking, investment banking, construction, legal and related fields. The Board is expected to have necessary experience and expertise to steer the functioning of the NLMC in a professional manner. An eminent professional would be appointed as the Chairman of the Board, the Minister stated.

Incorporation of NLMC is underway which is being steered by Department of Public Enterprises, Ministry of Finance, the Minister stated.