Cabinet approves setting up of National Land Monetization Corporation(NLMC)

What is the News?

The Union Cabinet has approved the setting up of the National Land Monetization Corporation (NLMC) as a wholly-owned Government of India company with an initial authorized share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore.

What is National Land Monetization Corporation(NLMC)?

Administrative Ministry: Department of Public Enterprises, Ministry of Finance

Purpose: To undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies

Composition: NLMC would be administered by a Board of Directors. The Board structure envisages a mix of government officials and eminent professionals in the field of real estate, banking, investment banking, construction, legal and related fields. An eminent professional would be appointed as the Chairman of the Board.

Functions of NLMC

– To undertake professional and orderly monetization of land and other non-core assets referred to it.

– To own, hold, manage and monetize land and building assets of CPSEs under closure and surplus land and buildings of 100% GoI owned CPSEs under strategic disinvestment.

– To advise and support monetization of surplus land assets of a) Demerged companies holding surplus land, b) Other CPSEs.

– To advise and assist government departments, statutory bodies/ authorities, autonomous bodies, corporations, etc. on the monetisation of surplus and under-utilized non-core assets.

– To identify surplus land and building assets to create an inventory for monetization in consultation with CPSEs/other government agencies.

– To build a capable organization with skill and competencies to enable speedier and efficient monetisation which can generate maximum value from government assets.

– To act as a repository of best practices in land monetization, assist and provide expert technical advice to DPE / DIPAM /Government of India in the implementation of asset monetisation program.

Source: This post is based on an article “Cabinet approves setting up of National Land Monetization Corporation(NLMC)” published in PIB on 30th March 2022.