NEW DELHI :
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved setting up National Land Monetization Corporation (NLMC) to undertake monetization of surplus land and building assets of central public sector enterprises (CPSEs) and other government agencies.
NLMC has been set up as a government-owned company with an initial authorized share capital of Rs5000 crore and paid-up share capital of ₹150 crore, according to a government statement. The statement added that the Board of Directors of NLMC will comprise senior central government officers and eminent experts.
Besides, the Department of Public Enterprise under the ministry of finance, will set up the company and act as its administrative ministry, the government said. Public sector companies have referred nearly 3,400 acres of land and other non-core assets to the government for monetization.
“Going forward, Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry," the statement said.
Mint reported on 4 February that following the cabinet clearance, the Department of Public Enterprises (DPE) will take over setting up the special purpose vehicle (SPV), which will be run as a professional company to derive more value from the assets.
The asset monetization proposed by finance minister Nirmala Sitharaman in last year’s budget is distinct from the government’s disinvestment plan, which involves selling stakes in public sector enterprises.
“At present, CPSEs hold considerable surplus, unused and under used non-core assets in the nature of land and buildings. For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value. NLMC will support and undertake monetization of these assets," the statement said.
The formation of the SPV for monetization of land and non-core assets for was announced by finance minister Nirmala Sitharaman last year. With the monetization of non-core assets, the government would be able to generate substantial revenues by monetizing unused and under-used assets, government said in a statement.
Tuhin Kanta Pandey, secretary of the department of investment and public asset management (DIPAM) had earlier told Mint that a lot of land is available for monetization but the government does not have the capacity to carry it out. He had added that SPV as a professional organization would be expected to get a better valuation for the land parcels and non-core assets, that many CPSEs may not be able to monetize on their own.
“NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government owned CPSEs under strategic disinvestment. This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government owned CPSEs. These assets may be transferred to NLMC to hold, manage and monetize these assets," the statement said.
In other developments, the Union cabinet opened up mining of new groups of minerals as part of India’s strategy to boost domestic production and push import substitution. The Union cabinet approved the proposal of the ministry of mines for amending the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) to specify the rate of royalty for Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum.
While Glauconite and Potash are used as fertilizer in agriculture, Platinum group of metals and Andalusite and Molybdenum are high-value minerals used across industries. This approval will allow auction of these mineral blocks, thereby reducing imports and generating opportunities in mining and manufacturing sectors, a government statement on the cabinet decision said.
In other decisions, the Union Cabinet also approved a memorandum of understanding (MoU) between Indian Council of Medical Research (ICMR) and the Oxford University to eliminate three vector borne diseases—malaria, visceral leishmaniasis and filariasis. The MoU also aims to strengthen capacity building of Indian scientists and medical researchers.
The Cabinet also approved another MoU signed by ICMR, National Institute of Health of Department of Health and Human Services and US based National Institute of Allergy and Infectious Diseases (NIAID), to collaborate on medical research related to tuberculosis, parasitic infections, HIV/AIDS, allergic diseases, immune system diseases, and other emerging and re-emerging pathogens.
This comes in the backdrop of a growing clamour to find the origin of Covid-19 pandemic that originated in Wuhan, China with allegations that a laboratory leak was the reason behind the global pandemic.
The Cabinet also approved the establishment of the WHO Global Centre for Traditional Medicine (WHO GCTM) in Jamnagar, Gujarat. To be set up under Ministry of AYUSH, WHO GCTM will promote AYUSH systems across the globe.
Swati Luthra & Subhash Narayan contributed to the story
