The National Land Monetization Corporation (NLMC) has been authorised by the Union Cabinet, which has led by Prime Minister Modi

CURRENT AFFAIRS

The National Land Monetization Corporation (NLMC) has been authorised by the Union Cabinet, which has led by Prime Minister Modi

CURRENT AFFAIRS

Posted On : 10th March, 2022

Description

NLMC Facts

Finance Minister Nirmala Sitharaman initially suggested NLMC in the Union Budget 2021-22. NLMC will now be established as a completely owned subsidiary of the Government of India. The NLMC will be administered by the Ministry of Finance's Department of Public Enterprise. The initial authorised share capital of NLMC will be 5000 crores, with a paid-up share capital of 150 crores.

NLMC Composition

A merit-based selection method will be used to appoint the Chairman and non-Government Directors. The NLMC Board of Directors will be made up of prominent Central Government officials and specialists. NLMC will also be supplied with technical skills to help it handle the monetization process effectively.

NLMC Functions

NLMC will facilitate and carry out the monetization of surplus land and buildings owned by Central Public Sector Enterprises (CPSEs) and other government entities. NLMC will also give technical assistance to the government in the asset monetization program's execution. CPSEs may transfer non-core assets to NLMC for management and monetization.

The requirement for monetization

Many Central Public Sector Enterprises (CPSEs) have excess assets such as lands and buildings that are not being used productively. Monetization of such non-core assets might assist in releasing their value. These underutilised and underutilised assets can be successfully leveraged to attract private-sector investments and create new job opportunities through monetization. The monetization of these assets will also create significant cash for the government, which can be utilised to build economic and social infrastructure. The National Land Monetization Corporation's (NLMC) monetization will hasten the strategic disinvestment of CPSEs.