National Land Monetisation Corporation (NLMC)

Why in news?

• The National Land Monetisation Corporation (NLMC) is being set up in accordance with the 2022-23 Budget announcement.

National Land Monetisation Corporation (NLMC):

• It is being set up as a 100 percent 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 works 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.
• NMLC would be required to work with the various government departments for land monetisation. After the formation of the corporation, they will identify and manage surplus lands and assets through this special purpose vehicle (SPV).
• It would be governed by the board that would include secretaries from the concerned ministries as well as real estate business men, investment bankers etc. These will be managed by the chief executive officer in day to day operations.

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).

PRACTICE QUESTION:

Consider the following statements regarding National Land Monetisation Corporation (NLMC):

1. It is being set up as a 100 percent Government of India owned entity

2. It works as an asset manager for lands owned by central government and central public sector enterprises

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer