NLMC green light for land monetisation of surplus assets

0
63
NLMC green light for land monetisation of surplus assets

In a move to undertake monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs), the federal cabinet, on 9 March 2022, approved forming a National Land Monetisation Corporation (NLMC), according to Bhagwat Kisanrao Karad, the Minister for Finance.

The NLMC is a wholly owned government of India company with an initial share capital of INR50 billion (USD654 million) and paid-up share capital of INR1.5 billion.

The company aims to undertake the monetisation of land and other non-core assets, and to advise and assist government departments, statutory bodies and authorities, autonomous bodies, corporations, etc., on monetisation of surplus and under-utilised non-core assets, according to government website circular.

The NLMC will work as an asset manager for land owned by the central government or CPSEs having the freedom to invest, lease or rent assets, or monetise them. It is free to develop assets for commercial or residential purposes.

The corporation will act as a repository in land monetisation, and assist and provide expert technical advice to the Department of Public Enterprises and the Department of Investment and Public Asset Management in the implementation of an asset monetisation programme.

The cabinet further mentioned setting up a board of directors comprising senior government officials and eminent professionals in the field of real estate, banking, investment banking, construction, legal and related fields.

The incorporation of the NLMC was underway and being led by the Department of Public Enterprises and the Ministry of Finance, said Karad.

Law.asia subscripton ad red 2022