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Economic Survey 2022: Govt sets up NLMC to fast-track monetisation of public sector entities' land

So far, central public enterprises have referred 3,400 acres of land and other non-core assets for monetisation to NLMC, the survey said.

January 31, 2022 / 07:41 PM IST

The Economic Survey presented by Finance Minister Nirmala Sitharaman on January 31 said that the government has set up a National Land Monetisation Corporation (NLMC) to
fast-track monetisation of land and non-core assets of public sector entities.

"In pursuance of the Budget announcement, National Land Monetisation Corporation (NLMC) is being incorporated as a 100 per cent Government of India owned entity with an initial authorised share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore," the survey said.

So far, central public enterprises have referred 3,400 acres of land and other non-core assets for monetisation to NLMC, the survey said.

The monetisation of non-core assets envisages unlocking of value of these assets and generates returns on the equity that the Government has invested in them

"MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd, Instrumentation Ltd etc. is at present under various stages of the transaction," the survey said.

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The creation of the NLMC is in line with FM Sitharaman's announcement in 2021-22 Budget for a Special Purpose Vehicle (SPV), with capacity and expertise, to carry out the monetisation of the land and other non-core assets in an efficient and prudent manner, in line with international best practices.

With regard to the government's asset monetisation drive, the survey said there is an aggregate monetisation potential of Rs 6 lakh crore through core assets of the central government over a four-year period from 2021-22 to 2024-25.

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