National Land Monetisation Corporation
According to Economic Survey, central government has set up a “National Land Monetisation Corporation” in a bid to FastTrack the monetisation of land and non-core assets of public sector entities.
- As of now, CPSEs have referred 3,400 acres of land and other non-core assets for monetisation.
- Lands have been referred from CPSEs including MTNL, BSNL, BEML, BPCL, HMT Ltd, B&R, and Instrumentation Ltd.
Finance Minister Nirmala Sitharaman had announced to set up a Special Purpose Vehicle (SPV) in 2021-22 Budget, because desired skill set to take management responsibility and monetisation responsibility of non-core assets in government is limited. The SPV was set up to carry out monetisation of the land and non-core assets, in an efficient and prudent manner, in accordance with international best practices.
National Land Monetisation Corporation (NLMC)
The National Land Monetisation Corporation (NLMC) is being set up in accordance with the Budget announcement. It is being set up as a 100 per cent Government of India owned entity. The initial authorised share capital will be Rs 5,000 crore while subscribed share capital will be of Rs 150 crore. It work as an asset manager for lands owned by central government and central public sector enterprises (CPSEs). It has the freedom to invest, lease or rent assets or monetise them based on suggestions by many sources. It is free to develop assets for commercial or residential purposes.
Asset Monetisation Drive
As per Economic Survey 2021-22, there is an aggregate monetisation potential of Rs 6 lakh crore by means of core assets of the Union government over a period of four-year, from 2021-22 to 2024-25. Top five sectors, namely roads, railways, oil & gas pipelines, power and telecom account for 83 per cent of the aggregate value.
Who is steering the monetisation?
Monetisation of core assets is steered by NITI Aayog, while monetisation of non-core assets is steered by the Department of Investment and Public Asset Management (DIPAM).
Category: Economy & Banking Current Affairs - 2022
|View All E-Books: Recent Release|