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Economy
Mahesh

09/03/22 19:18 PM IST

National Land Monetization Corporation

In News 
  • The Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore. 
Details 
  • NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. 
  • The proposal is in pursuance of the Budget Announcement for 2021-22.
  • With monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets.
Significance 
  • 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, monetization of these surplus land and non-core assets is important to unlock their value. 
  • NLMC will support and undertake monetization of these assets. 
  • This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.

About NLMC
  • NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government owned CPSEs under strategic disinvestment.
  • This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government owned CPSEs. 
  • These assets may be transferred to NLMC to hold, manage and monetize these assets.  NLMC will also advise and support other Government entities (including CPSEs) in identifying their surplus non-core assets and monetizing them in a professional and efficient manner to generate maximum value realization. 
  • In these cases (e.g., on-going CPSEs and listed CPSEs under strategic disinvestment), NLMC will undertake surplus land asset monetization as an agency function. 
  • It is expected that NLMC will act as a repository of best practices in land monetization, assist and provide technical advice to Government in implementation of asset monetization programme.
Source- PIB 

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