National Land Monetization Corporation (NLMC): a Special Purpose Vehicle (SPV) for undertaking surplus land monetization

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Last Updated11/03/2022

The Union Cabinet has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company.
The initial authorized share capital will be Rs 5000 crore and paid-up share capital of Rs 150 crore.

As an agency role, the NLMC will monetise surplus land assets and help and advise the Center in this regard.
To ensure professional operations and management, the Board of Directors of NLMC would include senior Central Government executives and recognised specialists.
A merit-based selection method will be used to appoint the Chairman and non-government Directors of the NLMC.
It will be set up under the administrative jurisdiction of the finance ministry as a new company.

This will enable for the productive use of underutilized assets, resulting in private sector investments, new economic activity, a boost to the local economy, and the generation of funds for economic and social infrastructure.
NLMC will also be responsible for owning, holding, managing, and monetizing surplus land and building assets of CPSEs that are closing down, as well as surplus non-core land assets of Government-owned CPSEs that are being strategically disinvested.
This will accelerate the closure of CPSEs and make the strategic disinvestment of government-owned CPSEs go more smoothly.

NLMC will monetize surplus land and building assets owned by Central Public Sector Enterprises (CPSEs) and other government organizations.
CPSEs are companies in which the Central Government or other CPSEs own 51 percent or more of the stock.
CPSEs currently have a large amount of surplus, underutilized, and under-utilized non-core assets in the form of land and buildings.
Other government entities (including CPSEs) will be advised and assisted by NLMC in identifying surplus non-core assets and monetizing them in a professional and efficient manner to maximize value realization.
NLMC will serve as a repository for land monetization best practices, as well as assist and provide technical guidance to the government in the execution of asset monetization programmes.

It is the process of knowing the economic value of underutilized or unutilized public assets in order to generate new sources of revenue for the government and its entities.
Suppose an asset is not being used adequately because it has not been properly developed or marketed well enough.

NLMC will help in recognizing the wide range of specialized skills and expertise required for asset monetization in real estate market research, legal due diligence, valuation, master planning, investment banking, land management etc.