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A National Land Monetisation Corporation (NLMC) will be set up to undertake the monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies.

Accordingly, the decision was taken by the Union cabinet to set up NLMC as a wholly owned Government of India company with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore.

The decision was based on a proposal made as a Budget Announcement for 2021-22.

"With monetisation of non-core assets, the government would be able to generate substantial revenues by monetising unused and under-used assets," an official communique 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, monetisation of these surplus land and non-core assets is important to unlock their value. NLMC will support and undertake monetisation of these assets."

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

Besides, NLMC is also expected to own, hold, manage and monetise surplus land and building assets of CPSEs under closure and the 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."

Furthermore, NLMC will advise and support other government entities (including CPSEs) in identifying their surplus non-core assets and monetising them in a professional and efficient manner to generate maximum value realisation.