To fast track monetisation of land and non-core assets of central public-sector enterprises (CPSEs), the government may soon set up the National Land Monetisation Corporation (NLMC) under the Department of Public Enterprises (DPE).
According to sources, the NLMC will be a 100% government-owned company with an initial, authorised share capital of Rs 5,000 crore and a subscribed share capital of Rs 150 crore. It will be governed by a board which will include secretaries from the concerned ministries, representatives from the real-estate sector and investment bankers, and headed by a chief executive officer (CEO) who will manage its day-to-day operations.
A cabinet note has been prepared and the proposal is likely to get cabinet approval soon, a source added.
Finance Minister Nirmala Sitharaman had proposed a special purpose vehicle for this in her Budget 2021-2022 speech.
As of now, CPSEs have put forward about 3,500 acres of land and other non-core assets for monetisation. Such assets of CPSEs under closure will be transferred to the corporation.
“It will be up to the NLMC to lease or rent the assets, or monetise them in any other way. The NLMC may also invest and develop the assets for commercial or residential purposes, and generate income through rentals or lease," the source added.
Apart from this, the corporation will also provide advisory services for monetisation to government entities that own surplus land and non-core assets. NLMC may charge a fee from such agencies.
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