Potential traders and different patrons might quickly get to buy land parcels from the federal government by its e-marketplace (GeM) portal.
PK Singh, chief govt officer, GeM, informed FE that the platform has initiated dialogue with the division of public enterprises (DPE), the ministry of dwelling affairs and businesses just like the Delhi Development Authority to conduct land auctions on behalf of varied authorities ministries and departments.
GeM was lunched as an internet platform to allow the federal government and associated entities to purchase items and companies in a clear method almost six years in the past.
“We have made a presentation to the DPE (which is involved in the government’s land monetisation initiative). If all goes well, we will soon do land auctions. We are ready for this,” Singh mentioned, including that the platform might turn out to be useful for the federal government’s land monetisation drive as effectively.
The GeM’s transfer will give a leg as much as the federal government’s land monetisation drive and increase its non-debt receipts. Separately, the federal government can be monetising its numerous brownfield infrastructure property. Under an asset monetisation pipeline, the place it targets to boost Rs 6 trillion in 4 years by FY25, the federal government raised near Rs 1 trillion in FY22.
The concept for beginning land auctions emanated from GeM’s current Swachhta (cleanliness) drive, Singh mentioned. Many authorities departments have piled up an enormous variety of outdated information and papers, computer systems, furnishings, and so on. And after they promote these things, they don’t get a lot. So, as an experiment, GeM not too long ago began the train of promoting the junk merchandise of presidency departments on its platform. “Even in our office, whatever we used to get earlier by selling our old stuff to people like scrap dealers, we are now getting five-six times more money. Then we thought, why not start land auctions on the portal? We can play a great role here.” Singh mentioned.
Explaining the thought additional, Singh mentioned any authorities division or entity that wishes to promote land or give it on lease sometimes has sure circumstances. GeM will construct these riders into the public sale course of, in order that the vendor is happy.
Moreover, at current, every division might have a choose variety of bidders who bid every time. But as soon as the auctions are performed on the GeM platform, the universe of bidders shall be a lot broader, so the federal government will get deal, Singh mentioned. GeM platform presently has about 60,000 patrons, and 4 million sellers of products and companies (of which 1,25,000 are lively). Of course, these individuals will not be anticipated to purchase land (some firms that promote their merchandise should still be all in favour of it if there’s a whole lot). But GeM, given its rising presence as a market, has potential to attract many bidders.
Moreover, GeM will cost solely as much as 0.5% in charges, that are a lot decrease than these charged by another entities conducting such auctions now (which may go as much as 3%), Singh mentioned. Moreover, GeM is prepared to do it virtually free of charge if a single transaction exceeds Rs 200 crore.
Among authorities ministries, railways and defence are the largest official land-owners. The complete land obtainable with the Railways is near 1.18 million acres, of which roughly over 1,25,000 hectares is vacant. Data compiled by the Directorate General of the Defence Estates present that the defence ministry has about 1.8 million acres, of which 1,60,000 acres is throughout the 62 cantonments, and about 1.6 million acres exterior their boundaries.
As for CPSEs, the Cabinet final month accredited the establishing a wholly-owned National Land Monetisation Corporation. So far, CPSEs have referred about 3,400 acres and different non-core property to the finance ministry for monetisation.
A spurt in purchases by numerous ministries and departments drove up the procurement of products and companies by the GeM portal to a document Rs 1 trillion in FY22, reflecting its rising acceptability as an internet market. Before the newest feat, procurement by the portal had breached the Rs 1-trillion mark in as many as four-and-a-half years.
Source: www.financialexpress.com”