Cabinet approves setting up of National Land Monetisation Corporation for disinvestments

The Union Cabinet on Wednesday approved the setting up of the National Land Monetisation Corporation (NLMC) as a wholly-owned Government of India company. It will have an initial authorised share capital of Rs 5,000 crore and a paid-up share capital of Rs 150 crore. 

NLMC will undertake monetisation of surplus assets of Central Public Sector Enterprises (CPSEs). The decision will aid the government to generate substantial revenues by monetising unused and under-used assets, the government said in a statement. 

For CPSEs undergoing disinvestment or closure, monetisation of these surplus land and non-core assets is important to unlock their value. The government, in the statement, says that NLMC will support the monetisation of such assets to enable productive utilization and trigger private sector investments.

NLMC is also expected to own, hold, manage and monetise surplus land to speed up the closure process of CPSEs and smoothen the strategic disinvestment process. Further, NLMC will also advise and support other government entities (including CPSEs) in identifying their surplus non-core assets and monetising them in a professional and efficient manner to generate maximum value realisation. It is expected that NLMC will act as a repository of best practices in land monetisation, assist and provide technical advice to Government in implementation of asset monetisation programme," the government's statement said. 

In addition, the Board of Directors of NLMC will comprise senior central government officers and experts to enable operations and management of the company. The government has said that the Chairman, non-Government Directors of the NLMC will be appointed through a merit-based selection process. "It has been decided to hire professionals from the private sector, similar to other specialized Government companies like National investment and infrastructure Fund (NIIF) and Invest India. Going forward, Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry," the government said.