A high-level inter-ministerial government panel has recommended the monetisation of surplus land and building assets currently held by various Central Public Sector Enterprises (CPSEs). The value of these identified assets is estimated to be over Rs 1,100 crore, marking a significant step in the government's ongoing efforts to unlock the economic potential of underutilised public holdings.
According to a release issued by the Ministry of Finance on Thursday, the decision was finalised by a panel chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT). This recommendation represents a continuation of the government's broader asset monetisation programme, which seeks to transform stagnant public assets into productive resources through professional transaction structuring, systematic assessment, and competitive price discovery.
The identified list of assets has been forwarded for consideration and final approval to the 'Alternative Mechanism,' a body specifically delegated by the Cabinet to oversee these transitions. This committee comprises the Union Finance Minister, the Minister of Road Transport and Highways, and the minister responsible for the specific administrative ministry associated with the assets in question. Once the Alternative Mechanism provides its approval, the government will move forward with further monetisation activities.
Overseeing the technical and logistical aspects of this process is the National Land Monetization Corporation (NLMC), a wholly-owned government entity functioning under the administrative control of the DPE. Established in the wake of the 2021-22 Union Budget, the NLMC is tasked with the due diligence, valuation, and transaction structuring necessary to bring these assets to the market. Its role is pivotal in ensuring that the government’s non-core assets are managed efficiently and transparently.
The administrative framework for these decisions involves a structured multi-stage process. The DPE serves as the secretariat for both the Alternative Mechanism and the Inter-Ministerial Group (IMG), which is responsible for reviewing proposals submitted by asset owners or administrative ministries. After obtaining necessary feedback from the NLMC, the DPE submits these proposals to the IMG. The IMG then takes decisions regarding the specific model of monetisation to be utilised, the reserve price of the assets, and the final evaluation of bids.
For assets that fall below a certain value threshold—and excluding those already transferred to the NLMC—the responsibility for disposal remains with the concerned administrative ministry or the CPSE itself. For larger assets, the Alternative Mechanism holds the final authority to approve reserve prices and verify the winning bid amounts, ensuring that the process remains consistent with national economic objectives.
This latest move is part of a larger initiative to streamline the management of public sector holdings. By shifting the focus toward the productive utilisation of land and buildings, the government aims to derive greater economic value from resources that have remained stagnant or underutilised. The forthcoming review by the Cabinet-delegated committee is expected to set the stage for the next phase of these transactions, further advancing the government's strategy for public asset management.
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