The Union Cabinet approved creating a new company to hold and monetise surplus land and buildings of government agencies and PSUs privatised or closed. The particular purpose vehicle (SPV) called the National Land Monetisation Corporation (NLMC) would be set up as a Government of India owned company with an initial share capital of Rs 5,000 Crores and paid-up share capital of Rs 150 Crores, an official statement said.

“NLMC will launch monetising surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies. With the monetisation of non-core assets, the government will be able to generate significant revenues by monetising unused and under-used assets,” it said.

“At present, CPSEs have large surpluses, unused and underused non-core assets like land and buildings. For CPSEs undergoing strategic closure, monetisation of these surplus land and non-core assets is important to unlock their value. NLMC will support and undertake monetisation of these assets,” the statement added.

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This will also allow productive use of these underutilised assets to begin private sector investments in new economic activities, boost the local economy and generate financial resources for economic and social infrastructure. NLMC will hire professionals from the private sector of similar specialised government companies like the National Investment and Infrastructure Fund (NIIF) and Invest India, the statement stated.