The Union Cabinet on Wednesday approved the setting up of the National Land Monetization Corporation (NLMC) as a Special Purpose Vehicle (SPV) for undertaking surplus land monetization.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.

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NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies.

The proposal is in pursuance of the Budget announcement for 2021-22.

With the monetization of non-core assets, the Government would be able to generate substantial revenues by monetizing unused and under-used assets.

At present, CPSEs hold considerable surplus, unused and underused non core assets in the nature of land and buildings. For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value.

NLMC will support and undertake the monetization of these assets. This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost the local economy and generate financial resources for economic and social infrastructure.

NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government-owned CPSEs under strategic disinvestment. This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government-owned CPSEs. These assets may be transferred to NLMC to hold, manage and monetize these assets.

NLMC will also advise and support other Government entities (including CPSEs) in identifying their surplus non-core assets and monetizing them in a professional and efficient manner to generate maximum value realization.

In these cases (eg, ongoing CPSEs and listed CPSEs 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, assist and provide technical advice to the Government in the implementation of the asset monetization programme.