Cabinet okays setting up of NLMC to monetise govt land

12 Mar 2022 CW Team

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

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

Infrastructure Energy

25 Jun 2026

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..