Union Cabinet approves setting up of National Land Monetization Corporation

With the monetization of non-core assets, the government will be able to generate substantial revenue by monetizing unused and underutilized assets.

Presently, CPSEs have considerable 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 undertake monetization of these assets. It will also enable productive use of these underutilized assets for private sector investment, new economic activities, boosting the local economy and generating financial resources for economic and social infrastructure.

According to a finance ministry statement, “NLMC is also expected to own, manage and monetise surplus land and construction assets of CPSEs under closure and surplus non-core land assets of state-owned CPSEs under strategic disinvestment.” ” To expedite the process of closure of CPSEs and to facilitate the process of strategic disinvestment of State owned CPSEs. These assets can be transferred to NLMC for holding, managing and monetizing these assets. NLMC will also advise and support other Government entities (including CPSEs) in identification. To monetize their surplus non-core assets and in a professional and efficient manner to generate maximum value realization. In these cases (for example, on-going CPSEs and CPSEs listed under strategic disinvestment), NLMC will undertake surplus land asset monetization as an agency function. It is expected that NLMC will act as a repository of best practices in land monetization, provide implementation assistance and technical advice to the Government. Asset monetization program.

NLMC will have the necessary technical expertise to manage and monetize land assets commercially on behalf of CPSEs and other government agencies. The Board of Directors of NLMC will consist of senior officers of the Central Government and eminent experts to enable professional operation and management of the Company. The appointment of Chairman, Non-official Directors of NLMC will be done through merit-based selection process.

Recognizing the wide range of specialized skills and expertise required for asset monetization in real estate market research, legal due diligence, appraisal, master planning, investment banking, land management etc., it has been decided to hire professionals from the private sector. . Specialized government companies such as the National Investment and Infrastructure Fund (NIIF) and Invest India. NLMC will be a lean organization with at least full time employees, who will be hired directly from the market on contract basis. The Board of NLMC will be provided with the flexibility to hire, pay and retain experienced professionals from the private sector.

Going forward, the Department of Public Enterprises, Ministry of Finance, will set up the company and serve as its administrative ministry.