: The Union Cabinet on Wednesday gave its go-ahead to a proposal to set up National Land Monetization Corporation (NLMC), a wholly owned Government of India company, which will manage sales of surplus land and building assets of public sector entities.

With monetization of non-core assets, the government would be able to generate substantial revenues by monetizing unused and under-used assets, an official statement said adding that the proposal is in pursuance of the Budget Announcement for 2021-22.

The Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the proposal to set up NLMC with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore.

“NLMC will undertake monetization of surplus land and building assets of Central Public Sec-tor Enterprises (CPSEs) and other government agencies,” the statement said.

At present, CPSEs hold considerable surplus, unused and under used non-core assets in the nature of land and buildings, it said.

For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value, the statement noted.

NLMC will support and undertake monetization of these assets, it said adding that this will also enable productive utilisation of these under-utilised assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.

This new entity 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, the statement said.

These assets may be transferred to NLMC to hold, manage and monetize these assets and the company 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 realisation.