Center approves setting up of National Land Monetization Corporation, DPE to set up a company

NLMC has been set up as a Government owned company with an initial authorized share capital of Rs.5000 crores and a paid-up share capital. According to a government statement, 150 crores. The board of directors of NLMC will consist of senior central government officials and eminent experts, the statement said.

In addition, the Department of Public Enterprises, under the Ministry of Finance, will set up the company and act as its administrative ministry, the government said. Public sector companies have referred about 3,400 acres of land and other non-core assets to the government for monetization.

“Going forward, the Department of Public Enterprises, Ministry of Finance, will set up the company and act as its administrative ministry,” the statement said.

Mint reported on February 4 that after the Cabinet approval, the Department of Public Enterprises (DPE) will set up the Special Purpose Vehicle (SPV), which will be run as a professional company to get more value out of the assets.

The asset monetization proposed by Finance Minister Nirmala Sitharaman in last year’s budget is different from the government’s disinvestment plan, which involves selling stake in public sector enterprises.

“At present, CPSEs have substantial surplus, unutilized and underutilized non-core assets in the nature of land and buildings. For CPSEs with strategic disinvestment or closure, monetization of these surplus lands and non-core assets is crucial to unlock their value. NLMC will support and work towards monetization of these assets.”

The formation of an SPV for monetization of land and non-core assets was announced by Finance Minister Nirmala Sitharaman last year. With the monetization of non-core assets, the government will be able to generate substantial revenue by monetizing unused and underutilized assets, the government said in a statement.

Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), had earlier told the mint that there is a lot of land available for monetization but the government does not have the capacity to do it. He had said that the SPV as a professional organization would be expected to get better valuations for land parcels and non-core properties, which many CPSEs may not be able to monetize on their own.

“NLMC is also expected to own, manage and monetise the surplus land and construction assets of the closed CPSEs and the surplus non-core land assets of the state-owned CPSEs under strategic disinvestment. This will expedite the closure process of CPSEs and facilitate strategic disinvestment process of state-owned CPSEs. These assets can be transferred to NLMC for holding, managing and monetizing these assets.”

In other developments, the Union Cabinet opened up mining of new clusters of minerals as part of India’s strategy to boost domestic production and pursue import substitution. The Union Cabinet has approved the proposal of the Ministry of Mines to amend the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) to specify the rate of royalty for Glauconite, Potash, Emerald, Platinum Group of Metals . pgm), andalusite, sillimanite and molybdenum.

While glauconite and potash are used as fertilizers in agriculture, the platinum group of metals and andalusite and molybdenum are high-value minerals used in industries. A government statement on the cabinet’s decision said the approval would allow auction of these mineral blocks, which would reduce imports and create opportunities in the mining and manufacturing sectors.

In other decisions, the Union Cabinet also approved a Memorandum of Understanding (MoU) between the Indian Council of Medical Research (ICMR) and Oxford University to eliminate three vector-borne diseases- malaria, visceral leishmaniasis and filariasis. The MoU also aims to strengthen the capacity building of Indian scientists and medical researchers.

The Cabinet also approved another MoU signed by ICMR, National Institutes of Health, Department of Health and Human Services and the US-based National Institute of Allergy and Infectious Diseases (NIAID) to collaborate on medical research related to tuberculosis, parasitic infections, HIV/AIDS. Approved. , allergic diseases, immune system diseases, and other emerging and re-emerging pathogens.

This comes in the backdrop of growing clamor to trace the origins of the COVID-19 pandemic that originated in Wuhan, China, alleging that a laboratory leak was behind the global pandemic.

The cabinet also approved the establishment of WHO Global Center for Traditional Medicine (WHO GCTM) at Jamnagar, Gujarat. To be set up under the Ministry of AYUSH, WHO GCTM will promote AYUSH systems across the world.

Swati Luthra and Subhash Narayan contributed to the story

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