In news– In pursuance of the Budget Announcement for 2021-22, the Union Cabinet has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company recently.
About National Land Monetization Corporation (NLMC)-
- NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies.
- NLMC has been given an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.
- At present, CPSEs hold considerable surplus, unused and under-used non-core assets in the nature of land and buildings.
- NLMC is 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 the Government in implementation of asset monetization programme.
- NLMC will have necessary technical expertise to professionally manage and monetize 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.
- It has been decided to hire professionals from the private sector, similar to other specialized Government companies like National investment and infrastructure Fund (NIIF) and Invest India.
- The Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.