The department of public enterprises (DPE) within the finance ministry is taking over the monetisation of non-core assets like land, real estate, and infrastructure from the department of investment and public asset management (DIPAM).
The shift has started, according to four persons with knowledge of the situation, with the National Land Monetization Corporation (NLMC) established to monetise non-core land holdings under DPE as the first stage. “DPE will handle all non-core asset monetisation; they will collaborate with line ministries. One of the four senior officials aware of the development claimed that DIPAM was in charge of monitoring this.
Another official, who wished to remain anonymous, said: “The NLMC is being formed up for exclusively monetising the land assets, the recruitment process is going on, and other non-core assets like buildings, roads, et cetera, will also be shifted to the department.”
DPE incorporated NLMC in June. Transmission lines and pipes are still with DIPAM, but they are also being relocated, according to a DPE official who declined to give his name.
As of Wednesday, the ministry of finance, DIPAM, and DPE had not responded to inquiries received last week.
The establishment of NLMC as a wholly owned government company with a paid-up share capital of $150 billion and an initial authorised share capital of 5,000 crore rupees was approved by the Union cabinet in March. NLMC will be responsible for monetising surplus land and non-core assets of central public sector enterprises and other government agencies. However, NLMC has not yet made any money off of non-core assets. On a case-by-case basis, NLMC will monetise non-core assets through a request for proposal or expression of interest routes to public and private parties for commercial or captive usage.