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Informist, Friday, Oct. 18, 2024

 

By Sagar Sen and Krity Ambey

 

NEW DELHI – The government is likely to fully operationalise National Land Monetization Corp and revamp the staffing with appointment of key management personnel, including a full-time chief executive officer, by December, a finance ministry official said. The company currently operates on an ad-hoc basis with a Department of Public Enterprises official as the CEO.  

 

The government's plan to monetise non-core assets of public sector companies is yet to take off meaningfully, even after over two years of setting up the special purpose vehicle. "We want to activate National Land Monetization Corp. We want to energise the staffing," the official told Informist. "There is no full-time CEO right now, a joint secretary is in-charge. We want to have a CEO in place and fix the staffing in the next 2-3 months."

 

The Union Cabinet had approved setting up National Land Monetization Corp in 2022 with an authorised share capital of INR 50 billion and paid-up capital of INR 1.5 billion. The special purpose vehicle is responsible for carrying out the monetisation of non-core assets of public sector companies to unlock their maximum value.

 

National Land Monetization Corp is also responsible for facilitating strategic disinvestment or closure of loss-making public sector units. It is currently helping Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. monetise their land assets.  

 

The government is likely to appoint an Indian Administrative Service officer of additional secretary rank as the CEO of the monetisation arm, the official said. "The CEO can then further fill other relevant positions in the organisation."

 

The finance ministry may also appoint a chairperson, the official said. The government wants to have an empowered board for the company comprising senior government officials and eminent professionals who have experience in the field of real estate, banking, investment banking, construction, legal and related fields.

 

Once fully operational, National Land Monetization Corp can also help the defence ministry monetise about 32,000 acres of land belonging to military farms and abandoned airfields, the government had said earlier. 

 

While the government does not have a fixed target for sale of non-core assets, it aims to raise INR 500 billion through disinvestment and asset monetisation in the current fiscal year ending March. The government had raised INR 300 billion from disinvestment and asset monetisation in 2023-24 (Apr-Mar).  End 

 

Edited by Akul Nishant Akhoury

 

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