The Union Cabinet has approved the formation of National Land Monetisation Corporation (NLMC) as a wholly owned government of India company to fast track the monetisation of land and non-core assets of public sector entities.
NLMC will undertake monetisation of surplus land and building assets of Central Public Sector Enterprises and other Government agencies. The Centre allocated an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore for setting up NLMC.
There will be a Chief Executive Officer (CEO) and a technical team to facilitate land monetisation. There will be members from senior officials of the finance ministry, department of public enterprises, ministry of housing and urban affairs and independent directors from finance, real estate industry in the corporation.
The new entity will work as an asset manager for lands owned by the Union government and central public sector enterprises. The corporation will be allowed to raise capital from the equity market, based on the value of its leased assets.
The corporation will also develop concession agreements for land development and sale, legal management of litigation/encumbrances, development planning, design and bid process management.
