The National Land Monetisation Corporation (NLMC), working under the supervision of the Department of Public Enterprises, has successfully completed asset monetisation transactions amounting to ₹9,000 crore during the current financial year. As the government continues its drive to unlock the value of surplus land held by various public sector undertakings, the agency is now setting its sights on further sales to bolster the national exchequer.
According to the chief executive officer of the NLMC, Rohan Chandra Thakur, the organization is targeting an additional ₹5,000 crore to ₹6,000 crore in transactions over the next few months. Should these targets be met, the cumulative value of monetised assets for the fiscal year is expected to reach between ₹14,000 crore and ₹15,000 crore. This momentum follows significant activity in the real estate sector, where state-owned entities are looking to offload high-value holdings.
A notable example of this ongoing activity is the proposed e-auction of a 5.119-acre land parcel in Delhi, which is currently held by the state-run HIL Ltd. The property, valued at ₹829 crore, has already garnered considerable attention from major private real estate developers, including Godrej, Omaxe, and M3M. The interest from such prominent industry players underscores the market's appetite for prime land parcels brought under the NLMC's disposal umbrella.
The NLMC has already demonstrated successful execution in recent months, notably through two e-auctions for land parcels in Vizag. In the first of these instances, a plot with a reserve price of ₹312 crore eventually fetched ₹366 crore, marking a premium of approximately 17%. The results for a secondary auction involving 180 plots belonging to Rashtriya Ispat Nigam are anticipated to be announced this week, further shaping the agency's success metrics for the quarter.
Beyond large-scale land parcels, the government’s monetisation strategy extends to a diverse array of assets. The NLMC is currently preparing residential flats, houses, and various commercial properties located in major cities for market entry. Valuation exercises are underway for properties situated in Delhi, Mumbai, Prayagraj, and Kolkata, ensuring that these assets are positioned correctly for future bidding processes. A specific assessment is also being conducted for seven residential flats and a commercial property across Delhi and Mumbai.
The scope of the project is wide-reaching, involving land assets from several prominent entities, including Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL), and various public sector undertakings under the ministries of Chemicals and Fertilisers and Steel. These entities currently have assets worth an additional ₹4,000 crore to ₹5,000 crore in the pipeline at various stages of processing, which will provide a steady flow of potential transactions in the near term.
In August, the Department of Public Enterprises provided final approval for the monetisation of property worth ₹13,500 crore. This regulatory clearance paved the way for the NLMC to bring a collection of high-value assets belonging to MTNL, BSNL, and Rashtriya Ispat Nigam to the market. As the agency moves forward, these coordinated efforts between government ministries and the NLMC are intended to streamline the disposal of non-core assets held by state-owned corporations, ultimately aiming to transform idle government property into productive economic value.
Comments