MOPPING UP MORE MONEY

In a move to monetise non-core assets of the government and boost the economy, the cabinet has okayed the formation of the National Land Monetisation Corporation

NON-CORE ASSETS

The PSUs hold considerable surplus, unused and under-used land and buildings across the country

ON March 9, the Union Cabinet approved the formation of the National Land Monetisation Corporation (NLMC) to handle the sale of surplus land and buildings of the government, its agencies and Central Public Sector Enterprises (CPSES).

Public assets such as roads, airports, railways, power transmission lines, pipelines, shipping terminals, mobile towers and other land and building financial assets are controlled by departments of the central government, respective state governments and PSUs.

After the meeting, chaired by Prime Minister Narendra Modi, the government said that the 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. According to an official statement released after the cabinet meeting, the Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.

NLMC was first proposed in the Union Budget 2021-22 by Union Finance Minister Nirmala Sitharaman. In her budget speech, she had said that monetisation of non-core assets-comprising largely of surplus land with ministries, departments and public sector enterprises- could be done either through a direct sale, concession or by similar means.