Big boost to infra investment as government approved National Land Monetization Corporation.
Highlight
- The Union Cabinet approved the setting up of National Land Monetization Corporation on 9th March.
- This is to monetise surplus land, PSU buildings, which are being sold or are on the verge of closure
- An official statement said that NLMC will be set up as a wholly owned company of the Government of India
The Union Cabinet on Wednesday (March 9) approved the setting up of a National Land Monetization Corp (NLMC) to manage surplus land and buildings of PSUs, which are being sold or on the verge of closure, and government agencies. to monetize.
NLMC will be set up as a wholly owned Government of India company with an initial authorized share capital of Rs 5,000 crore and a paid-up share capital of Rs 150 crore, an official statement said.
“NLMC will monetise surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies,” it said.
With the monetization of non-core assets, the government will be able to generate substantial revenue by monetizing unused and underutilized assets, it said.
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“At present, CPSEs have substantial surplus, unutilized and underutilized non-core assets in the nature of land and buildings.
“For CPSEs going through strategic disinvestment or closure, monetization of these surplus lands and non-core assets is crucial to unlock their value.
NLMC will support and work towards monetization of these assets.”
It will also enable productive use of these underutilized assets for private sector investment, new economic activities, boosting the local economy and generating financial resources for economic and social infrastructure.
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