The Union Cabinet met under the chairmanship of Prime Minister Narendra Modi on Wednesday. In this meeting, approval was given to establish National Land Monetization Corporation (NLMC) as a wholly owned company of the Government of India. The National Land Monetization Corporation (NLMC) has been created to monetize surplus lands of government agencies and companies that are either being sold or which are on the verge of closure.
NLMC will be set up as a wholly owned Government of India company with an initial authorized share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore, an official statement said.
The proposal to create the National Land Monetization Corporation (NLMC) was introduced in the budget for 2021-22. On the basis of this proposal, the Union Cabinet on Wednesday approved its formation.
According to a statement issued by the government, “NLMC will undertake the work of monetization of assets such as additional land and buildings of central public sector undertakings and other government agencies.”
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According to the statement, apart from monetization of non-core assets, the corporation will also monetize such assets which are either not being used or are not being properly utilized. Actually, under this, those lying vacant lands and buildings will be sold, which the government does not need. This will help the government to raise revenue and fill its coffers.
At present, there are a large number of land and buildings owned by government companies and government undertakings, which are either not used, or they are of little use. According to a report, Central Public Sector Enterprises have given information of 3400 acres to the government for monetization.
The government believes that by monetizing these lands and buildings, productive work will be started on the lying vacant lands and buildings. At the same time, it will increase private sector investment, start new economic activities, boost the local economy and create financial resources for economic and social infrastructure.
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