Approval for National Land Monetization Corporation (NLMC)
The Union Cabinet has approved the formation of National Land Monetization Corporation (NLMC) as a Special Purpose Vehicle (SPV) for monetization of surplus land.
- The National Land Monetization Corporation (NLMC) will be set up as a wholly owned company of the Government of India.
- It will have an initial authorized share capital of Rs. 5,000 crore, and a paid-up share capital of Rs. 150 crore.
- Earlier it was proposed in the budget 2021-22. Land monetization is a part of asset monetization programme.
Role of NLMC:
- To monetise surplus land and non-core assets of Central Public Sector Enterprises (CPSEs) undergoing strategic disinvestment or closure process and provide assistance in this regard.
- To advise and assist public sector enterprises in identifying their surplus non-core assets. Also, monetizing them in a professional and efficient manner.
- To act as a repository of best practices related to land monetization. Also, providing assistance and technical advice to the government in the implementation of the asset monetization programme.
- It will also provide necessary technical expertise for professional management and monetization of land assets.
What is asset monetization?
- It means monetization of government assets. Under this, the government hands over unutilized or surplus government assets to the private sector for a specified period of time. In return, the private sector parties invest in those assets, make profits from them and give advance money or revenue rights to the government.
- Earlier, the government had launched a National Monetization Pipeline (NMP) for four years. This is likely to fetch around Rs 6 lakh crore.
Source – The Hindu
