Union Cabinet approves setting up of NLMC to undertake surplus land monetization

The Union Cabinet today approved the setting up of the National Land Monetization Corporation (NLMC) for undertaking surplus land monetization. It will be a wholly-owned government company with an initial authorized share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore.

NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. With the monetization of non-core assets, the government will be able to generate substantial revenues by monetizing unused and under-used assets. The proposal is in pursuance of the Budget Announcement for 2021-22.

At present, CPSEs hold a considerable surplus, unused and under-used non-core assets in the nature of land and buildings. For CPSEs undergoing strategic disinvestment, monetization of these surplus land and non-core assets is important to unlock their value. 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. The 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 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 (e.g., 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.

NLMC will have the necessary technical expertise to professionally manage and monetize land assets on behalf of CPSEs and other Government agencies. The Board of Directors of NLMC will comprise senior Central Government officers and eminent experts to enable professional operations and management of the company.

The Chairman, non-Government Directors of the NLMC will be appointed through a merit-based selection process.

Going forward, the Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.