Cabinet approved setting up of National Land Monetization Corporation for UPSC

Cabinet approves setting up of National Land Monetization Corporation as a Special Purpose Vehicle (SPV) for undertaking surplus land monetization

Hello, aspirants are you preparing for UPSC/APSC Mains exam? If yes, then you must be aware of the most important India Current Affairs for the upcoming competitive exam preparation. Therefore every aspirants need to know the recent trending current affairs for UPSC/APSC exam. In this regard "World_Polity" decides to provide you the most important Current Affairs topic Cabinet approved setting up of National Land Monetization Corporation for the upcoming UPSC/APSC exams. Infact the National Land Monetization Corporation will be a key topic in the Current Affairs section for the upcoming Mains exam. So the National Land Monetization Corporation for the exams will be a pedestrian to crack your exam.

Cabinet approved setting up of National Land Monetization Corporation

In this article we have provided you recent trending current affairs topic National Land Monetization Corporation. So, read this most important article on Cabinet approved setting up of National Land Monetization Corporation for the upcoming UPSC/APSC Mains exams. Infact the National Land Monetization Corporation is very important for APSC/UPSC mains exam.

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.  NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies.  The proposal is in pursuance of the Budget Announcement for 2021-22.

With monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets.

About National Land Monetization Corporation (NLMC)

• NLMC, proposed in the Union Budget 2021-22, will be set up as a Special Purpose Vehicle (SPV) wholly owned by the Government of India, with an initial authorised share capital of Rs 5000 crore.

• It will be under overall administrative control of the Department of Public Enterprises, Ministry of Finance.

Objectives of National Land Monetization Corporation (NLMC)

1. NLMC will own, hold, manage and monetize surplus land and building (core) assets of Central Public Sector Enterprises (CPSES) under closure and the surplus non-core land assets of Government owned CPSEs under strategic disinvestment.

2. It will also advise and support other Government entities (including CPSES) in identifying their surplus non-core assets and monetizing them in a professional and efficient manner to generate maximum value realization.

Need of National Land Monetization Corporation (NLMC)

1. At present, CPSEs hold considerable surplus, unused and under-used non-core assets in the nature of land and buildings.

2. According to the Economic Survey 2021-22, CPSEs (like, MTNL, BSNL, BPCL, BEML) have referred around 3,400 acres of land and other non-core assets to the Department of Investment and Public Asset Management (DIPAM, Ministry of Finance) for monetisation.

3. With monetization of non-core assets, the Government would be able to

generate substantial revenues by monetizing unused and under-used assets.

Working of National Land Monetization Corporation (NLMC)

• The new entity will work as an asset manager for lands owned by the Union government and central public sector enterprises.

• There will be a chief executive officer (CEO) and a technical team to facilitate land monetisation.

• The corporation will be allowed to raise capital from the equity market, based on the value of its leased assets.

• It will have members from senior officials of the finance ministry, ministry of housing and urban affairs and independent directors from finance, real estate industry.

• NLMC will hire professionals from the private sector as in the case of similar entities like the National Investment and Infrastructure Fund (NIIF) and Invest India, since real estate monetisation requires specialised skills and expertise.

• The SPV is likely to operate on the fee-based model and may become a permanent entity to monetise land on a regular basis.

Significance of National Land Monetization Corporation (NLMC)

1. NLMC will act as a repository of best practices in land monetization, assist and provide technical advice to the Government in implementation of asset monetization programmes.

2. This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government owned CPSES.

NLMC will be a lean organization with minimal full-time staff, hired directly from the market on a contract basis. Flexibility will be provided to the Board of NLMC to hire, pay, and retain experienced professionals from the private sector,” the Finance Ministry said.