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  • DAILY CURRENT AFFAIRS:Government of India to set up Land Monetisation Corporation

Government of India to set up Land Monetisation Corporation

Tags: National News

The Union cabinet chaired by the Prime Minister Narendra Modi has approved the creation of National Land Monetisation Corporation (NLMC). It will pool together and monetise the land owned by the government of India and its companies/corporations.

  • The NMLC will be owned by the government of India and under the Ministry of Finance. The Corporation will have a paid-up capital of Rs 150 crores and authorised capital of Rs 5000 crore.

  • In the 2021-22 Union Budget, Finance minister Nirmala Sitharaman has announced the setting up of a special purpose vehicle for this purpose.

  • Last September, the Government had put out a four-year National Monetisation Pipeline (NMP) worth an estimated Rs 6 lakh crore. Roads, Railways and power sector assets will comprise over 66 per cent of the total estimated value of assets to be monetised.

Concept Clearing 

What is Monetisation 

  • It refers to the process of turning non-revenue generating assets into cash. 

  • The Government of India and its various companies like railways, defence, telecommunications etc have surplus lands, buildings which are not being used or are generating less revenue than it is capable of. 

  • Under the monetisation plan these land or buildings can be sold, or used for commercial purposes in partnership with private companies so that optimum revenue can be generated.

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