National Land Monetization Corporation

March 10, 2022

On 9^th March 2022, the Union Cabinet chaired by PM Modi has approved the setting up National Land Monetization Corporation (NLMC).

About NLMC

NLMC was first proposed in the Union Budget 2021-22 by Finance Minister Nirmala Sitharaman. NLMC will now be set up as a wholly-owned Government of India company.
NLMC will be under the administrative jurisdiction of the Department of Public Enterprise, Ministry of Finance. NLMC’s initial authorized share capital will be ₹5000 crores and paid-up share capital is ₹150 crore.

Composition of NLMC

Appointment of Chairman and non-Government Directors will be done through a merit-based selection process. The Board of Directors of NLMC will comprise senior Central Government officers and experts. Technical expertise will also be provided to NLMC to professionally manage the monetization process.

Functions of NLMC

NLMC will support and undertake monetization of excess land and buildings of Central Public Sector Enterprises (CPSEs) and other Government institutions. NLMC will also provide technical advice to the Government in the implementation of the asset monetization program. CPSEs may transfer their non-core assets to NLMC to manage and monetize them.

Need for monetization

Many Central Public Sector Enterprises (CPSEs) have surplus assets like land and buildings, which are not put into productive use. Monetization of such non-core assets with help in unlocking their value.
Through monetization, these un-used & under-used assets can be productively used to attract investments from the private sector and generate new employment opportunities.
Monetization of these assets will also generate substantial revenues to the government, which can be used for creating economic and social infrastructure.

Monetization by National Land Monetization Corporation (NLMC) will speed up the strategic disinvestment process of CPSEs.

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