The Center recommends monetizing surplus assets of CPSEs worth over ₹ 1,100 crore | Today’s news
New Delhi: The Inter-Ministerial Group (IMG), a government panel, supported the sale of excess land and buildings owned by state-owned companies, assets worth more than ₹1,100 crore, the finance ministry said on Thursday.
The proposals now go to the Alternative Mechanism, a group tasked by Cabinet to decide on such sales. Further sales will follow only after he approves them.
The pressure comes as government is working towards an ₹80,000 crore target for FY27 from stake sale in SOEs and asset monetization. So far it has picked up ₹55,757.29 million from sale of shares and ₹6,366.93 crore from the sale of other assets, according to the website of the Department of Investment and Public Asset Management (Dipam).
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Separately, Rohan Chand Thakur, executive director of the National Land Monetization Corporation (NLMC) said. Mint before the agency expects to bring in more ₹4,000-5,000 crore from the sale of surplus land by the end of this fiscal. That’s about the top ₹It has already sold 9000 crore plots.
NLMC CEO told Mint ₹1,100 crore is part of the expected amount ₹4,000 to 5,000 crore monetization plan by the end of this fiscal.
The IMG is chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT).
The latest recommendations come amid a broader push by the government to release the value of surplus land held by CPSEs and other government entities. Many public sector enterprises own land and buildings that are no longer needed for their core operations but can potentially be put to productive use through monetization.
The NLMC also recently concluded the second phase of e-auction of surplus land belonging to Rashtriya Ispat Nigam Ltd (RINL), which operates the Visakhapatnam steel plant, and generated successful bids worth ₹218 crore from the sale of 114 plots on November 3. Bids were almost 18% higher than the total reserve price ₹184.8 million crowns. Thanks to this, the company auctioned 264 plots of land in two phases, generating a total of successful bids in the amount ₹584.33 crore against the combined asking price of Rs ₹497.29 crore, according to a finance ministry statement.
Expected returns come as the government tracks ₹80,000 crore target from disinvestment and monetization of public sector assets in fiscal year 2027 (FY27). It has been implemented so far ₹55,757.29 million from the sale of shares in public sector entities and ₹6,366.93 crore through other asset monetization initiatives, according to data on the Dipam website.
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NLMC, the government’s specialized agency for monetization of surplus land and other ancillary assets, facilitates this process by working with ministries, departments and public sector enterprises owning assets.
Her responsibilities include asset valuation, due diligence, valuation, transaction structuring and asset preparation for monetization. The aim is to identify commercially viable opportunities and facilitate transparent, competitive processes to realize value from surplus state-owned properties.
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NLMC is a wholly owned government company under the administrative control of DPE, Ministry of Finance. It was set up following an announcement in the Union Budget 2021-22 to facilitate monetization of surplus land and other non-core assets of CPSEs and government entities.
The company provides transaction advisory, due diligence, valuation and other professional services to facilitate the monetization process.
