Union Cabinet, led by Prime Minister Narendra Modi, approved the establishment of the National Land Monetization Corporation (NLMC) as a wholly-owned Government of India corporation with an initial authorised share capital of 5000 crores and a paid-up share capital of 150 crore. The National Land Management Corporation (NLMC) would monetize surplus land and building assets owned by Central Public Sector Enterprises (CPSEs) and other government organisations. The idea is in accordance with the 2021-22 Budget Announcement.
- CPSEs currently have a large amount of surplus, idle, and underutilised non-core assets in the form of land and buildings.
- The monetization of excess land and side assets is critical for CPSEs experiencing strategic disinvestment so that their value can be unleashed. Monetization of the assets will be taken care of and carried out by NLMC.
- This will also allow for the productive use of underutilised assets, resulting in private sector investments, new economic activity, a boost to the local economy, and the generation of financial resources for economic and social infrastructure.
- On behalf of CPSEs and other government organisations, NLMC will have the technical expertise to competently manage and monetize land holdings. To ensure professional operations and management of the organisation, the Board of Directors of NLMC would be made up of senior Central Government executives and recognised specialists.
- A merit-based selection method will be used to appoint the Chairman and non-government directors of the NLMC.