About 3,500 acres of land and other non-core assets of Central Public Sector Enterprises (CPSEs) have been identified to raise money by selling them. With the formation of NLMC, the process of selling land of dozens of government companies including BEML, SCI, MTNL will accelerate.
New Delhi. The government may soon constitute the National Land Monetization Corporation (NLMC) under the Department of Public Enterprises (DPE) to fast-track the monetization of land and non-core assets of Central Public Sector Enterprises (CPSEs). NLMC will be 100% government owned company. Its initial authorized share capital will be Rs 5,000 crore and subscribed share capital will be Rs 150 crore. The company will be governed by a board consisting of secretaries from the respective ministries, representatives from the real estate sector and investment bankers.
What will be the benefit of formation of NMLC?
The NMLC will be headed by a Chief Executive Officer (CEO), who will manage its day-to-day operations. According to sources in CNBC-Awaaz, the formation of NMLC on land monetization may happen soon. This will speed up the process of selling land of dozens of public sector companies (PSUs), including BEML, SCI, MTNL. According to a source, a cabinet note has been prepared for this. This proposal is expected to get cabinet approval soon.
How will NMLC work?
Finance Minister Nirmala Sitharaman had proposed a special purpose for the formation of NMLC in her budget 2021-2022 speech. So far, CPSEs have identified about 3,500 acres of land and other non-core assets for monetization. Such closing assets of the CPSE will be transferred to this corporation. Thereafter, it will be up to the NLMC to lease, rent or sell the property. The corporation may also invest and develop property for commercial or residential purposes. Apart from this, it can raise money by renting or selling. Apart from this, it will also provide advisory services for the process of raising money by selling it to government entities that have surplus land and non-core assets.
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