Cabinet gives nod to SPV for monetisation of surplus land
New Delhi: The Union Cabinet on Wednesday approved creating a new company to hold and monetise surplus land and buildings of government agencies and PSUs that are being privatised or being shut down.
The special purpose vehicle (SPV) called the National Land Monetisation Corporation (NLMC) will be set up as a wholly-owned Government of India company with an initial authorized share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore, an official statement said.
"NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies," it said.
With monetization of non-core assets, the government would be able to generate substantial revenues by monetizing unused and under-used assets, it said.
The government has in recent months spoken of asset monetisation as means of not just revenue generation but also boosting economic activity as Asia's third-largest economy emerges from the pandemic.
Asset monetisation is the process of creating new sources of revenue for the government and its entities by unlocking the economic value of unutilised or underutilised public assets.
The statement, however, did not detail the modalities of transferring the surplus land and buildings to NLMC.