Cabinet approves setting up of National Land Monetization Corporation

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

New Delhi: The Union Cabinet has approved the setting up of the National Land Monetization Corporation (NLMC) as a wholly-owned Government of India company with an initial authorized share capital of Rs 5,000 crore and a paid-up share capital of Rs 150 crore.

Providing information in this respect to the Rajya Sabha in a written reply to a question today, Union Minister of State for Finance Dr Bhagwat Kisanrao Karad said the Cabinet decision was taken on March 9, 2022. 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, he stated, adding that incorporation of NLMC was underway and was steered by the Department of Public Enterprises, Ministry of Finance.

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

1. To undertake professional and orderly monetization of land and other non-core assets referred to it.
2. 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.
3. To advise and support monetization of surplus land assets of
   1. Demerged companies holding surplus land
   2. Other CPSEs

4. To advise and assist government departments, statutory bodies/ authorities, autonomous bodies, corporations, on the monetisation of surplus and under-utilized non-core assets.
5. To identify surplus land and building assets to create an inventory for monetization in consultation with CPSEs/other government agencies.
6. To build a capable organisation with skill and competencies to enable speedier and efficient monetisation which can generate maximum value from government assets.
7. To act as a repository of best practices in land monetization, assist and provide expert technical advice to DPE / DIPAM /Government of India in the implementation of the 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 the 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.

– global bihari bureau