Cabinet Approves Setting Up Of National Land Monetization Corporation

Cabinet Approves Setting Up Of National Land Monetization Corporation On March 9, 2022, the Union Cabinet approved the establishment of the National Land Monetization Corporation (NLMC) as a wholly owned Government of India corporation with an initial authorised share capital of Rs 5,000 crore and a paid-up share capital of Rs.150 crore. Dr. Bhagwat Kisanrao Karad, Union Minister of State for Finance, revealed this in a written reply to a question in the Rajya Sabha today. NLMC would monetize surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government bodies, according to the Minister. According to the Minister, the idea is in line with the Budget Announcement for 2021-22. The Minister listed the following goals for the NLMC:

a. To carry out a professional and orderly monetization of the land and other non-core assets that have been recommended to it.

b. To own, hold, manage, and monetize land and building assets of CPSEs that are being closed down, as well as surplus land and buildings of 100% GoI-owned CPSEs that are being strategically disinvested.

c. To advise and support monetization of surplus land assets

i. Demerged companies holding surplus land

ii. Other CPSEs

d.  To provide advice and assistance to government departments, statutory bodies/authorities, autonomous entities, businesses, and other organizations on how to monetization surplus and under-utilised non-core assests.

e. In collaboration with CPSEs and other government organisations, identify surplus land and building assets and create an inventory for monetization.

f. to create a skilled organisation with the necessary skills and competences to enable faster and more effective monetisation of government assets in order to maximise value.

g. Assist and give professional technical guidance to DPE / DIPAM / Government of India in the implementation of the asset monetisation programmed by acting as a repository of best practises in land monetization.

The Minister went on to say that the NLMC would be run by a Board of Directors. The proposed Board structure calls for a mix of senior government officials and notable professionals from the real estate, banking, investment banking, construction, legal, and other industries. The Board of Directors supposed to have the requisite knowledge and competence to guide the NLMC's operations in a professional way. The Minister mentioned that the Chairman of the Board would be an outstanding professional. The Ministry of Finance's Department of Public Enterprises is guiding the incorporation of NLMC, according to the Minister.