The Union Cabinet has approved the setting up of a new government-owned firm National Land Monetisation Corporation (NLMC) for pooling and monetizing sovereign and public sector land assets.
GS II- Indian Economy
Dimensions of the Article:
- What is NLMC?
- How will it function?
What is NLMC?
- The National Land Monetisation Corporation (NLMC) would be established with a paid-up capital of 150 crore and an initial authorised share capital of 5,000 crore.
- The government will engage private sector experts and appoint a chairman to lead the NLMC through a “merit-based selection procedure.”
- The National Land Management Corporation (NLMC) would monetize surplus land and building assets owned by Central Public Sector Enterprises (CPSEs) and government organisations.
- Around 3,400 acres of land and other non-core assets have been referred for monetisation by CPSEs to the Department of Investment and Public Asset Management (DIPAM).
- According to the latest statistics in the Economic Survey 2021-22, MTNL, BSNL, BPCL, BEML, and HMT are all in the process of monetizing non-core assets.
How will it function?
- Surplus land and building assets of CPSEs under closure, as well as surplus non-core land assets of Government-owned CPSEs under strategic disinvestment, shall be owned, held, managed, and monetised by NLMC.
- The closure of CPSEs will be accelerated, and the strategic disinvestment of Government-owned CPSEs will be smoother, according to the statement.
- Surplus land asset monetisation will be an agency function for NLMC, and it will assist and provide technical assistance to the Centre in this regard.
- The NLMC board would be made up of top government officials and distinguished experts, with a merit-based selection process for the chairman and non-government directors, according to the announcement.
- The Corporation will employ a small number of full-time employees who will be hired on a contract basis from the market.
- By monetizing underused and under-utilized assets, the government would be able to gain significant cash.
- The new corporation will also assist in the monetization of assets belonging to public-sector companies that have closed or are in the process of being sold strategically.
-Source: Indian Express