The Centre is moving to monetise surplus land and buildings owned by CPSEs worth over Rs 1,100 crore. An Inter-Ministerial Group recommended these proposals to unlock value from underutilised public assets. The National Land Monetization Corporation will now help the government manage these properties to ensure they get productive use.

The move is part of the government's broader effort to unlock value from surplus and underutilised public assets and put them to productive use. | ChatGPT generated/Representative Image

An Inter-Ministerial Group (IMG) has recommended asset monetisation proposals worth more than Rs 1,100 crore for consideration and approval by the Alternative Mechanism (AM).

The group is chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT).

The proposals mainly cover surplus land and building assets belonging to Central Public Sector Enterprises (CPSEs) that have been identified for monetisation.

The move is part of the government's broader effort to unlock value from surplus and underutilised public assets and put them to productive use.

Under the asset monetisation programme, CPSEs and other government entities can realise the economic value of surplus assets through proper assessment, professional preparation of transactions and competitive price discovery.

Proposals to seek approval

The recommended asset monetisation proposals will now be placed before the Cabinet-delegated Alternative Mechanism for consideration and approval.

Once the required approvals are received, the government will take forward the monetisation process in accordance with the prescribed procedures.

The National Land Monetization Corporation (NLMC), which specialises in the monetisation of surplus government land and other non-core assets, will play an important role in the process.

It works with concerned ministries, departments and asset-owning entities on activities such as asset assessment, due diligence, valuation, transaction structuring and taking assets to the market for monetisation.

The initiative is aimed at improving the management of public assets and ensuring that surplus properties are put to productive use. The government is also focusing on transparent and competitive processes to maximise the value of these assets and support investment and economic development.

About NLMC

The National Land Monetization Corporation is a wholly owned Government of India company under the Department of Public Enterprises, Ministry of Finance.

NLMC was established following an announcement in the Union Budget 2021-22 to help monetise surplus land and other non-core assets belonging to CPSEs and other government entities.

The organisation provides professional support for the monetisation process, including transaction advisory, due diligence and valuation.

It also helps structure transactions and facilitates transparent and competitive monetisation of surplus government assets.