UPSC Exam   »   Yojana Magazine Analysis: SWAMITVA Scheme   »   National Land Monetization Corporation (NLMC)

National Land Monetization Corporation to be set up as Special Purpose Vehicle

National Land Monetization Corporation- Relevance for UPSC Exam

  • GS Paper 2: Indian Economy- Land reforms in India.

National Land Monetization Corporation to be set up as Special Purpose Vehicle_40.1

 

National Land Monetization Corporation in news

  • Recently, the Union Cabinet has approved the setting up National Land Monetization Corporation (NLMC) as a wholly-owned Government of India company.
  • The proposal is in pursuance of the Budget Announcement for 2021-22.

National Land Monetization Corporation to be set up as Special Purpose Vehicle_50.1

 

Need for National Land Monetization Corporation

  • Background: At present, CPSEs hold a considerable surplus, unused and under-used non-core assets in the nature of land and buildings.
    • For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value.
  • Need for NLMC: It will support and undertake monetization of the above surplus and unutilized government assets.
  • Administrative Ministry: Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.

Yojana Magazine Analysis: SWAMITVA Scheme

 

Key Facts about National Land Monetization Corporation

  • About: National Land Monetization Corporation is to be set up as an SPV to undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies.
  • Share Capital: National Land Monetization Corporation (NLMC) is being set up with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.
  • Organizational Structure: The Board of Directors of NLMC will comprise senior Central Government officers and eminent experts to enable professional operations and management of the company.
    • The Chairman, non-Government Directors of the NLMC will be appointed through a merit-based selection process.
    • 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.
  • Expected Benefits:
    • With the monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets.
    • This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.

राष्ट्रीय भूमि मुद्रीकरण निगम को विशेष प्रयोजन वाहन के रूप में स्थापित किया जाएगा

Key Functions of National Land Monetization Corporation

  • NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government-owned CPSEs under strategic disinvestment.
    • This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government-owned CPSEs.
  • NLMC 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.
  • NLMC will act as a repository of best practices in land monetization, assist and provide technical advice to the Government in the implementation of the asset monetization program.

 

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