The Union Cabinet on Wednesday approved setting up a wholly-owned National Land Monetisation Corporation (NLMC) with an initial authorized share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore.
Since the desired skill on monetization of non-core assets in government is limited, finance minister Nirmala Sitharaman had announced in the Budget for 2021-22 that s special purpose vehicle (SPV) would be set up for monetization of the land and other non-core assets of CPSEs/departmental arms in line with international best practices. However, the contours of the SPV are still awaited.
So far, CPSEs have referred about 3,400 acres of land and other non-core assets to finance ministry for monetization. Monetization of non-core assets of different CPSEs i.e., MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd and Instrumentation Ltd is at present under various stages of the transaction.
Monetization of non-core assets envisages unlocking of value of these thus far unutilized or underutilized assets and generate returns on the equity that the government has invested in them.
NLMC will likely be set up with a chairman from the private sector and a CEO from the government, sources had told FE. The lean entity will likely have manpower of about two dozen drawn from the private sector as well as the government.