Cabinet okays setting up of NLMC to monetise govt land
Real Estate

Cabinet okays setting up of NLMC to monetise govt land

The Cabinet Ministers have approved setting up the National Land Monetisation Corporation (NLMC) to monetise surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies.

To be owned by the central government, NLMC will have an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore under the Ministry of Finance.

With the monetisation of non-core assets, the government could generate substantial revenues by monetising unused and under-used assets. CPSEs hold surpluses, unused and under-used non-core assets like land and buildings.

Besides strategic sale and privatisation of state-owned companies, monetisation of idle land is part of the government strategy to reduce its business presence and generate resources for future asset creation.

Last year in September, the Centre had put out a four-year National Monetisation Pipeline (NMP) project worth around Rs six lakh crore. Roads, railways and power sector assets will have over 66% of the total estimated value assets for monetisation.

NLMC will be responsible for owning, holding, managing and monetising surplus land and building assets of CPSEs under closure and surplus non-core land assets of government-owned CPSEs under strategic disinvestment.

The Centre had set a target of Rs 1.75 lakh crore through several disinvestments in its Budget 2021-22. The target amount has been revised to Rs 78,000 crore for 2022-23, and now the target is Rs 65,000 crore. Moreover, in 2021-22, the government has raised Rs 12,423.67 crore through various modes of disinvestment.

Till now, CPSEs have referred around 3,400 acres of land and other non-core assets to the Department of Investment and Public Asset Management (DIPAM) for monetisation. The monetisation of non-core assets of Mahanagar Telephone Nigam Limited (MTNL), Bharat Sanchar Nigam Limited (BSNL), Bharat Petroleum Corporation Limited (BPCL), Bharat Earth Movers Limited (BEML), Hindustan Machine Tools (HMT) is currently under various stages of the transaction.

According to an official statement, the monetisation of land can be through direct sale or concession or by similar ways. Under the monetisation process, the government will transfer revenue rights to private parties for a specific transaction period in return for upfront money, a revenue share, and commitment of investments in the assets.

Image Source

Also read: Govt to set up Special Purpose Vehicle soon for land monetisation

The Cabinet Ministers have approved setting up the National Land Monetisation Corporation (NLMC) to monetise surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies. To be owned by the central government, NLMC will have an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore under the Ministry of Finance. With the monetisation of non-core assets, the government could generate substantial revenues by monetising unused and under-used assets. CPSEs hold surpluses, unused and under-used non-core assets like land and buildings. Besides strategic sale and privatisation of state-owned companies, monetisation of idle land is part of the government strategy to reduce its business presence and generate resources for future asset creation. Last year in September, the Centre had put out a four-year National Monetisation Pipeline (NMP) project worth around Rs six lakh crore. Roads, railways and power sector assets will have over 66% of the total estimated value assets for monetisation. NLMC will be responsible for owning, holding, managing and monetising surplus land and building assets of CPSEs under closure and surplus non-core land assets of government-owned CPSEs under strategic disinvestment. The Centre had set a target of Rs 1.75 lakh crore through several disinvestments in its Budget 2021-22. The target amount has been revised to Rs 78,000 crore for 2022-23, and now the target is Rs 65,000 crore. Moreover, in 2021-22, the government has raised Rs 12,423.67 crore through various modes of disinvestment. Till now, CPSEs have referred around 3,400 acres of land and other non-core assets to the Department of Investment and Public Asset Management (DIPAM) for monetisation. The monetisation of non-core assets of Mahanagar Telephone Nigam Limited (MTNL), Bharat Sanchar Nigam Limited (BSNL), Bharat Petroleum Corporation Limited (BPCL), Bharat Earth Movers Limited (BEML), Hindustan Machine Tools (HMT) is currently under various stages of the transaction. According to an official statement, the monetisation of land can be through direct sale or concession or by similar ways. Under the monetisation process, the government will transfer revenue rights to private parties for a specific transaction period in return for upfront money, a revenue share, and commitment of investments in the assets. Image Source Also read: Govt to set up Special Purpose Vehicle soon for land monetisation

Next Story
Resources

Tata Power turns 5,000 kg plastic waste into green livelihood for women

Tata Power’s Anokha Dhaaga Smart Circularity programme has converted over 5,000 kilograms of single-use plastic waste into recycled fabric products like T-shirts, tote bags, and haversacks, generating over Rs 20 lakh in fair-trade earnings for women entrepreneurs. The initiative is active across six centres and aligns with the World Environment Day 2025 theme — End Plastic Pollution. The project began with a collection drive across Tata Power’s Trombay plant, housing colonies, and offices. In collaboration with ReCircle and sanitation workers ('Safai Saathis'), the waste was processed i..

Next Story
Infrastructure Transport

Adani Airports secures US$ 750 million from global lenders for growth

Adani Airports Holdings (AAHL), a subsidiary of Adani Enterprises and India’s largest private airport operator, has raised US$ 750 million via External Commercial Borrowings from a consortium of international banks. The financing was led by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank. Of the total funds, US$ 400 million will be used to refinance existing debt, while the remainder will support growth capex across six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram—and expansion of AAHL’s non-aeronautical verticals including retai..

Next Story
Resources

CASE launches ‘Vijeta’ to skill youth in construction equipment sales

CASE Construction Equipment, a CNH brand, has launched ‘Vijeta’, a CSR initiative aimed at enhancing employability among underprivileged youth in the heavy equipment sector. The programme will equip participants with technical and practical skills required in construction equipment sales, particularly for backhoe loaders. It blends online and offline training, followed by a three-month hands-on industry stint at sales outlets, along with a monthly stipend. Puneet Vidyarthi, Head of Brand Marketing, CASE CE, APAC & India, said, “Vijeta bridges the skill gap in equipment sale..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?