Centre to raise Rs 15k cr from sale of real estate and hotel assets

The Centre plans to monetise real estate assets worth an estimated Rs 15,000 crore through the National Monetisation Pipeline (NMP), which includes several housing colonies in the national capital and eight ITDC hotels. The government has identified monetisation of seven colonies under redevelopment as well as the development of housing/commercial units on 240 acres of land in Ghitorni, the national capital, as urban real estate assets under the NMP. ITDC's eight hotels will also be monetized in various ways. Finance Minister Nirmala Sitharaman announced on Monday a Rs 6 lakh crore National Monetisation Pipeline to unlock value in infrastructure assets across sectors such as power, road, and rail. The NMP identifies assets and asset classes that will be monetised over time under various infrastructure ministries. The urban real estate assets have a monetisation potential of around Rs 15,000 crore during the financial years 2022-25, according to a document prepared by Niti Aayog. The government has identified seven General Pool Residential Accommodation (GPRA) Colonies in Delhi for redevelopment under this category. Sarojini Nagar, Naoroji Nagar, Netaji Nagar, Sriniwaspuri, Thyagraj Nagar, Mohammadpur, and Kasturba Nagar are the seven colonies. The redevelopment of these seven colonies is expected to cost Rs 32,276 crore in total. The Centre has also identified a 240-acre plot of land in Ghitorni for the development of residential and commercial units (Delhi). This project will create 8,000 GPRA units and 3,000 GPRA units for migrant construction workers. A total investment of Rs 15,000 crore is expected. Seven projects involving the redevelopment of colonies are planned for the NMP period. Niti Aaayog has recommended that these projects be developed with private sector participation due to their prime location and appealing commercial potential. According to the report, this will not only improve commercial and operational efficiencies but will also ensure upfront or periodic consideration to the authority or Ministry of Housing and Urban Affairs. The Ministry of Tourism has administrative control over the India Tourism Development Corporation (ITDC). Hotel Pondicherry in Pondicherry, Hotel Kalinga in Bhubaneswar, Hotel Ranchi in Ranchi, Hotel Nilachal in Puri, Hotel Anandpur Sahib in Rupnagar, Hotel Samrat in New Delhi, Hotel Ashok in New Delhi, and Hotel Jammu Ashok in Jammu are the eight hotels. Image Source Also read: Nirmala Sitharaman launches National Monetisation Pipeline