PTI, New Delhi
Published by: Surendra Joshi
Updated Wed, 09 Mar 2022 02:22 PM IST
Summary
The newly formed corporation will monetise the surplus land of public enterprises (PSUs) lying or on the verge of closure or being sold. That is, the government will raise revenue by selling the additional lands of these institutions.
The central government on Wednesday took a big step towards monetization or monetization. The Modi cabinet approved the formation of the ‘National Land Monetization Corporation’ (NLMC).
The newly formed corporation will monetise the surplus land of public enterprises (PSUs) lying or on the verge of closure or being sold. That is, the government will raise revenue by selling the additional lands of these institutions. NLMC will be constituted as a wholly owned company of the Government of India.
Its initial authorized share capital will be Rs 5 thousand crore, while the paid-up share capital will be Rs 150 crore. This information has been given in an official release.
It will work for monetization of additional land or buildings of Central Public Sector Undertakings (CPSEs) and other government agencies. In fact, under this, those lying vacant lands and buildings will be sold, which the government does not need. The treasury of the government will be filled by encashing them. With the monetization of non-core assets, the government will be able to garner substantial revenue by monetizing unused and underutilized assets.
Presently, CPSEs have a large number of such lands and buildings, which are underutilized or not being used at all or are lying idle. With their demonetisation, these lands and buildings can be used for productive purposes. This will increase private sector investment and start new economic activities, boost the local economy and create financial resources for economic and social infrastructure.
Expansion
The central government on Wednesday took a big step towards monetization or monetization. The Modi cabinet approved the formation of the ‘National Land Monetization Corporation’ (NLMC).
The newly formed corporation will monetise the surplus land of public enterprises (PSUs) lying or on the verge of closure or being sold. That is, the government will raise revenue by selling the additional lands of these institutions. NLMC will be constituted as a wholly owned company of the Government of India.
Its initial authorized share capital will be Rs 5 thousand crore, while the paid-up share capital will be Rs 150 crore. This information has been given in an official release.
It will work for monetization of additional land or buildings of Central Public Sector Undertakings (CPSEs) and other government agencies. In fact, under this, those lying vacant lands and buildings will be sold, which the government does not need. The treasury of the government will be filled by encashing them. With the monetization of non-core assets, the government will be able to raise substantial revenue by monetizing unused and underutilized assets.
Presently, CPSEs have a large number of such lands and buildings, which are underutilized or not being used at all or are lying idle. With their demonetisation, these lands and buildings can be used for productive purposes. This will increase private sector investment and start new economic activities, boost the local economy and create financial resources for economic and social infrastructure.