Govt sets up National Land Monetisation Corp
3,400 acres of land referred by CPSEs for sale
image for illustrative purpose
New Delhi: The government has set up a National Land Monetisation Corporation to fast track monetisation of land and non-core assets of public sector entities, the Economic Survey said on Monday. So far, CPSEs have referred 3,400 acres of land and other non-core assets for monetisation from CPSEs including MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd, Instrumentation Ltd.
Since, the desired skill set to take on the responsibility of management and monetisation of non-core assets in government is limited, Finance Minister Nirmala Sitharaman in 2021-22 Budget had announced setting up of 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.
"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," it said.
With regard to 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. Top five sectors including roads, railways, power, oil and gas pipelines and telecom account for around 83 per cent of the aggregate value. So far, CPSEs have referred 3,400 acres of land and other non-core assets for monetisation, the Survey said.
"The New Public Sector Enterprise Policy and Asset Monetisation Strategy introduced by the government reaffirm its commitment towards privatisation and strategic disinvestment," it said. While the monetisation of core assets is steered by NITI Aayog, the initiative for monetisation of non-core assets has been hitherto steered by the Department of Investment and Public Asset Management (DIPAM). Monetisation of non-core assets envisages unlocking of value of these thus far unutilized or under-utilised assets and generate returns on the equity that the Government has invested in them.
