Disinvestment in India

[pib] National Land Monetisation Corporation (NLMC)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : National Land Monetisation Corporation (NLMC)

Mains level : Asset Monetization

The Union Cabinet has approved the setting up of a new government-owned firm National Land Monetisation Corporation (NLMC) for pooling and monetizing sovereign and public sector land assets.

What is NLMC?

  • The National Land Monetisation Corporation (NLMC) is being formed with an initial authorised share capital of ₹5,000 crore and paid-up capital of ₹150 crore.
  • The government will appoint a chairman to head the NLMC through a “merit-based selection process” and hire private sector professionals with expertise.
  • The NLMC will undertake monetization of surplus land and building assets of Central public sector enterprises (CPSEs) as well as government agencies.

How will it function?

  • NLMC will own, hold, manage and monetise surplus land and building assets of CPSEs under closure and 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, the statement said.
  • NLMC will undertake surplus land asset monetisation as an agency function, and assist and provide technical advice to the Centre in this regard.
  • The NLMC board will comprise senior Government officers and eminent experts, while its chairman and non-Government directors will be appointed through a merit-based selection process, the statement said.
  • The Corporation will have minimal full-time staff, hired directly from the market on a contract basis.

Stipulated tasks

  • 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.
  • Monetisation of non-core assets of MTNL, BSNL, BPCL, BEML, HMT, is currently at various stages of the transaction, as per latest data in the Economic Survey 2021-22.

Significance of NLMC

  • The government would be able to generate substantial revenues by monetizing unused and under-used assets.
  • The new corporation will also help carry out monetization of assets belonging to public sector firms that have closed or are lined up for a strategic sale.

 

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