Corporation for monetisation of surplus govt land and buildings; Cabinet okays decision

New Delhi: Surplus land and buildings belonging to Public Sector Undertakings (PSUs) on the verge of closure or are being sold off, or belong to government agencies will be up for grabs in a new scheme decided by the Union government aimed at their monetisation.

The Union Cabinet on Wednesday approved the setting up of a National Land Monetisation Corp (NLMC) to monetise such assets.

NLMC will be set up as a wholly-owned government of India entity 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.

The idea behind the government decision is that monetization of non-core assets, will enable the government generate substantial revenues by monetizing unused and under-used assets, it said.

At present, CPSEs hold considerable surplus, unused and under-used non-core assets in the nature of land and buildings.

"For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value. NLMC will support and undertake monetization of these assets," the statement said.

This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.

(Based on PTI feed)