On Wednesday, the Union Cabinet chaired by Prime Minister Narendra Modi, approved the setting up of the National Land Monetisation Corporation (NLMC) to undertake the monetization work of surplus land and building assets of the Central Public Sector Enterprises.
The National Land Monetization Corporation will be wholly-owned by the Government of India company, which will have an initial authorized share capital of Rs 5000 crore and paid up share capital of Rs 150 crore.
The monetization of surplus land and building assets of the Central Public Sector Enterprises (CPSE) and other Government agencies will be undertaken by the National Land Monetisation Corporation and the proposal is in the pursuance of the Budget announced for 2021-22.
Monetization of the non-crore assets will help the Government to generate significant revenue by monetizing the either unused or the under-used assets.
According to a statement by the Ministry of Finance, the National Land Monetization Corporation is also expected to own, hold, manage and monetize surplus land and building assets of Central Public Sector Enterprises under closure and the surplus non-core land assets of Government owned Central Public Sector Enterprises under strategic disinvestment. This will hasten up the closure procedures of the CPSEs and will provide with ease for the strategic dispossession process of the Government owned Central Public Sector Enterprises.
The assets may be transferred to NLMC to hold, manage and monetize these assets. The National Land Monetisation Corporation will also advise and support other Government entities (including Central Public Sector Enterprises) in the identification of their surplus non-core assets and monetizing them in a professional and efficient manner to generate the maximum value realization.
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