The Union Cabinet on Wednesday approved the setting up of a National Land Monetisation Corp (NLMC) to monetise surplus land and buildings of Public Sector Undertakings (PSUs) that are being sold off or are on the verge of closure and government agencies.
NLMC will be set up as a wholly-owned Government of India company with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore, an official statement said.
“NLMC will undertake monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies,” it said.
With the monetisation of non-core assets, the government would generate substantial revenues by monetising unused and under-used assets.
“At present, CPSEs hold 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,” the statement said.
This will also enable productive utilisation of these under-utilised assets to trigger private sector investments in new economic activities, boost the local economy and generate financial resources for economic and social infrastructure.