NLMC recommends assets worth over Rs 5,000 crore for monetisation: Finance Ministry

Representational Image. File pic.

The National Land Monetization Corporation (NLMC) board of directors has recommended monetisation proposals worth over Rs 5,000 crore, according to the Finance Ministry.

"A major highlight of the meeting was the consideration and recommendation of monetisation proposals involving assets valued at over Rs 5,000 crore," the statement from the ministry said.

The proposals cover surplus land and building assets identified for monetisation and represent a significant step towards advancing the government's objective of unlocking the value of underutilised and surplus assets, it added.

This was discussed during the company's 21st Meeting of the Board of Directors on September 18.

What is NLMC's mandate?

NLMC is a wholly-owned government company under the administrative control of the Department of Public Enterprises (DPE), Ministry of Finance. It was established to undertake and facilitate the monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government entities.

According to the government, NLMC has been working closely with asset-owning entities to identify suitable assets, undertake necessary due diligence, facilitate valuation and structure appropriate monetisation processes, with an emphasis on transparency, efficiency and value realisation.

NLMC's mandate is aimed at unlocking the value of surplus public assets and supporting the government's broader asset monetisation objectives.

"The recommendation by the Board of proposals involving assets worth over Rs 5,000 crore underscores the growing scale of NLMC's engagement in the government's asset monetisation programme. By facilitating the productive use of surplus land and building assets, NLMC seeks to contribute to unlocking value from assets that may otherwise remain underutilised, while supporting asset-owning entities in pursuing transparent and commercially appropriate monetisation opportunities," it said.

Government raises funds through divestment and asset monetisation

The Indian government has raised 62,124 crore this year through disinvestment and asset monetisation, so far, achieving about 78 per cent of the FY27 target within five months.

Of this, it raised Rs 6,367 crore through asset monetisation via infrastructure investment trusts (InvIT).

The Centre's FY27 budgeted disinvestment estimate and asset monetisation target is Rs 80,000 crore.

Why is government pushing for divestment and asset monetisation?

Amid concerns over expenditure exceeding the budget estimates due to higher energy and fertiliser import bills, the government is accelerating the drive for miscellaneous capital receipts or disinvestment and asset monetisation in the current fiscal.

The fiscal deficit target for FY 27 is at 4.3 per cent.