The Union Cabinet chaired by Prime Minister Narendra Modi has approved the setting up National Land Monetisation Corporation (NLMC) with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore.
According to the press statement, NLMC will undertake monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies.
"With monetisation of non-core assets, the government would be able to generate substantial revenues by monetising unused and under-used assets," the statement read.
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 or closure, monetisation of these surplus land and non-core assets is important to unlock their value.
"NLMC will support and undertake monetisation 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," it added.
NLMC is also expected to own, hold, manage and monetise surplus land and building assets of CPSEs under closure and the surplus non-core land assets of government owned CPSEs under strategic disinvestment.
Going forward, Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry, according to the statement.
