nlmc:  Cabinet okays setting up of corporation to monetise surplus land of PSUs, govt agencies - Times of India

nlmc: Cabinet okays setting up of corporation to monetise surplus land of PSUs, govt agencies – Times of India

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NEW DELHI: The Union Cabinet on Wednesday approved the setting up of the National Land Monetisation Corporation (NLMC) to monetise surplus land of state-run public sector entities and other government agencies.
The entity will be a wholly-owned company of the Centre with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore. NLMC will undertake monetisation of surplus land and building assets of central public sector enterprises (CPSEs) and other government agencies. The proposal to set up such an entity was announced in the 2021-22 Union Budget. With monetisation of non-core assets, the government would be able to generate substantial revenues through unused and under-used assets. The Department of Public Enterprises, under the finance ministry, will set up the company and act as its administrative ministry.
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. This will also enable productive utilisation of these under-utilised assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure,” according to a government statement.
NLMC is also expected to own, hold, manage and monetise surplus land and building assets of CPSEs under closure and the surplus non-core land assets of government-owned CPSEs under strategic disinvestment. This is expected to speed up the closure process of CPSEs and smoothen the strategic disinvestment process of state-run companies.
The new entity 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, according to the statement.
“In these cases (e.g., on-going CPSEs and listed CPSEs under strategic disinvestment), NLMC will undertake surplus land asset monetisation as an agency function. It is expected that NLMC will act as a repository of best practices in land monetisation, assist and provide technical advice to the government in implementation of asset monetisation programmes,” the statement added.
NLMC will have necessary technical expertise to professionally manage and monetise land assets on behalf of CPSEs and other government agencies. The board of directors of NLMC will comprise senior central government officers and eminent experts to enable professional operations and management of the company. The chairman, non-government directors of the NLMC will be appointed through a merit-based selection process, the official statement said.
It has been decided to hire professionals from the private sector, similar to other specialised government companies such as the National investment and infrastructure Fund (NIIF) and Invest India. NLMC will be a lean organisation with minimal full-time staff, hired directly from the market on contract basis. Flexibility will be provided to the board of NLMC to hire, pay and retain experienced professionals from the private sector, the statement said.
It said that there is a recognition that a wide range of specialised skills and expertise is required for asset monetisation in real estate market research, legal due diligence, valuation, master planning, investment banking, land management.



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