NLMC expects an additional ₹5,000 crore from PSU land sales by the end of FY27| Today’s news
NEW DELHI: The National Land Monetization Corporation (NLMC) expects to create another ₹4,000-5,000 crore from the sale of surplus land assets held by Central Public Sector Enterprises (CPSEs) by the end of the current fiscal, over and above land worth approx. ₹9,000 crore which he has already sold.
Payments as several completed transactions are in various stages of processing while the company prepares to bring more plots to market, its CEO Rohan Chand Thakur said on Tuesday.
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The next tranche of monetization is expected to come from surplus land held by CPSEs under the ministries of telecom, chemicals and fertilisers, petroleum and petrochemicals and steel. Undertakings under these ministries have approached the NLMC to monetize land at various locations, he said.
Thakur was speaking on the sidelines of a meeting ahead of the bidding for the proposed e-auction of a 5.119-acre plot owned by HIL (India) Ltd in New Delhi.
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 website of the Department of Investment and Public Asset Management (Dipam).
Thakur clarified that the mandate of the NLMC is limited to monetization of surplus land and construction assets of CPSEs. This is separate from Dipam’s disinvestment program, which involves selling government stakes in public sector enterprises.
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Land auction
The latest proposed auction is for a 5.119-acre property in Najafgarh Industrial Area along Rohtak Road, Shivaji Marg, with a starting price of ₹829.69 million crowns. Several developers, including Omax, M3M and Godrej, have shown interest in the property, HIL (India) Ltd Chairman and Managing Director Kuldeep Singh said today.
The land has a road frontage of approximately 140 meters and offers development potential with a Floor Area Index (FSI) of up to 400 under applicable Transit Oriented Development (TOD) provisions, subject to statutory conditions and approvals. It is currently intended for industrial use, although conversion is permitted according to applicable standards and approvals.
The proposed sale is NLMC’s third publicly advertised e-auction in the past two months as the company seeks to unlock value from excess and underutilized land held by public sector enterprises through competitive bidding.
The latest exercise follows two earlier auctions involving the assets of ITI Ltd and Rashtriya Ispat Nigam Ltd (RINL).
In August, the NLMC had invited bids for the direct sale of a 44.03-acre plot owned by ITI Ltd along Old Madras Road (NH-75) in Krishnarajapuram, Bengaluru.
It also initiated the auction of 459 plots belonging to RINL, the legal entity that runs the Visakhapatnam steel plant. Spread over 93,572.21 square yards, the land is located in Visakhapatnam.
The RINL auction generated interest from investors. In the first phase, held on 12 October, 150 plots were sold and received winning bids worth ₹366.33 crore against the combined asking price of Rs ₹312.48 crore — a premium of 17.23%. Highest bid exceeded ₹1.80 million per square yard. The second phase, involving the remaining plots, was subsequently replanned.
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NLMC, a wholly owned government corporation under the administrative control of the Department of Public Enterprises (DPE) in the Ministry of Finance, was established to undertake and facilitate the monetization of surplus land and building assets of CPSEs and other government agencies.
It works with CPSEs to identify surplus properties, structure transactions and facilitate their sale through transparent and competitive processes.