Lok Sabha Question No. 345 (STARRED), answered on 2022-03-28
Subject: Establishment of NLMC
Ministry: FINANCE
Asked by: Subrata Pathak, Sudheer Gupta

## Government of India Ministry of Finance Department of Investment and Public Asset Management (DIPAM)

## LOK SABHA

## STARRED QUESTION No. *345

TO BE ANSWERED ON MONDAY, March 28, 2022

Chaitra 7, 1944 (Saka)

## Establishment  of NLMC

*345 : Shri Subrat Pathak Shri Sudheer Gupta

Will the Minister of Finance be pleased  to state :

- a) whether the Government has approved the setting  up of National Land Monetization  Corporation  (NLMC) and if so, the details  thereof;
- b) the aims and objective of setting up of NLMC along with the composition thereof;
- c) whether it is true that Central Public Sector Enterprises  (CPSEs) are holding  considerable  surplus  and under utilised  non-core  assets  in the form of land and buildings  and if so, the details  thereof;
- d) whether the Government proposes to monetize these unused and under utilised  assets  through NLMC and if so, the details  thereof and the total revenue likely to be generated  through it; and
- e) whether the Government proposes  to hire professionals  form private sector  for  this  purpose and  if  so,  the  criteria  for  selection of  such professionals?

## ANSWER

## THE MINISTER OF FINANCE

## (SMT. NIRMALA SITHARAMAN)

(a) to (e) : A statement is laid on the Table of the House.

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STATEMENT  REFERRED TO  IN  REPLY  TO  PART  (a)  to  (e)  OF  LOK  SABHA STARRED QUESTION No.  *345  TO BE ANSWERED ON MONDAY, MARCH 28, 2022 REGARDING 'Establishment of NLMC'

(a) The  Union  Cabinet  on  9 th   March  2022,  approved  setting  up  of  National  Land Monetization  Corporation  (NLMC) as a wholly owned Government of India company with an initial  authorized  share  capital of Rs 5000 crore and paid-up  share capital  of Rs 150 crore.  NLMC will undertake monetization  of surplus  land and building  assets of Central  Public Sector Enterprises  (CPSEs) and other Government agencies.   The proposal  is in pursuance of the Budget Announcement for 2021-22.

## (b) Aims and Objectives of the NLMC are as under:

- i. To undertake professional  and orderly monetization  of land and other noncore assets  referred to it.
- ii. To own, hold, manage and monetize land and building assets  of CPSEs under closure and surplus  land and buildings  of 100% GoI owned CPSEs under strategic disinvestment.
- iii. To advise and support  monetization  of surplus  land assets of
- i.  Demerged companies holding surplus  land
- ii.  Other CPSEs
- iv. To advise and assist  government departments,  statutory bodies/ authorities, autonomous  bodies, corporations,  etc. on monetisation  of surplus  and underutilized  non-core assets.
- v. To identify surplus  land and building assets  to create an inventory for monetization  in consultation  with CPSEs/other government agencies.
- vi. to build a capable organisation  with skill and competencies to enable speedier  and efficient monetisation  which can generate maximum value from government assets.
- vii. To act as a repository of best practices in land monetization,  assist and provide expert technical advice to Government of India in implementation  of asset monetisation  program.

NLMC would be administered  by a Board of Directors. The proposed  Board structure envisages  a mix of senior  government officials and eminent professionals  in the field of real estate, banking, investment banking, construction, legal and related fields. The Board is expected to have necessary experience and expertise to steer the functioning of the NLMC in a professional  manner. An eminent professional  would be appointed as the Chairman of the Board.

NLMC Board would have 13 Directors of which 7 would be government officials and 6 would  be  from non-government/private sector.  6  Government  directors  would  be Additional/  Joint Secretary level officers  from DEA, MoHUA, DIPAM, DPE, DPIIT, DHI. NLMC will be headed  by full-time Chief Executive Officer (CEO). The CEO would be responsible  for day-to-day operations  of the NLMC. CEO will be Additional  Secretary /Joint Secretary level officer of Government of India.

(c) & (d). The assets  of Central  Public Sector  Enterprises  (CPSEs) consist  of core assets  which are used  in operation  of the CPSEs as well  as non-core assets  which are in the form of surplus, un-used or under-used land and buildings  with no clear and

present  plan  for their optimal use  in near future. So far, nine  CPSEs have identified 3479 acres (approx.) of surplus  land and building  assets  for monetization.

NLMC being  established as  a  professional  agency,  will  undertake  due  diligence, structuring and  valuation for  the non-core  assets identified by  CPSEs.  Asset monetization  will  be  carried  out  through  a  transparent,  competitive  market  driven process.

(e) Monetization  requires a wide range of specialized  skills and expertise such as due diligence,  valuation,  investment  banking,  land  management,  etc.  which  is  not  fully available  within  government sector.  NLMC would  be a lean  organization  and  would hire  professionals from private  sector.  In  order  to  attract  and  retain  experienced professionals  from private sector, the Board of NLMC will have flexibility to lay down the criteria for selection of professionals.

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