NLMC Targets ₹15,000 Crore from PSU Asset Sales in FY27

The National Land Monetization Corporation (NLMC) has set an ambitious goal to mobilise up to ₹15,000 crore during the current financial year by selling non-core assets owned by public sector undertakings (PSUs). Rohan Chand Thakur, the corporation's CEO, shared this target on Tuesday, highlighting NLMC's ongoing role in facilitating asset sales for government entities.

So far, NLMC has successfully helped generate around ₹9,000 crore through the disposal of non-core assets from PSUs such as Mahanagar Telephone Nigam Limited (MTNL), Bharat Sanchar Nigam Limited (BSNL), and ITI Limited. Thakur noted that NLMC has been deeply involved in these transactions, managing the entire process including asset valuation, which is crucial for achieving fair market prices.

Looking ahead, the corporation has a pipeline featuring non-core assets valued between ₹5,000 and ₹6,000 crore. These assets belong to companies including MTNL, BSNL, HIL (India), and Rashtriya Ispat Nigam Limited (RINL). This pipeline reflects NLMC’s continuing efforts to unlock value from surplus land and underutilised properties held by government-owned firms.

Funds raised through these sales are transferred back to the holding companies, providing them with additional liquidity. Thakur also mentioned that several ministries, such as those overseeing steel, chemicals and fertilisers, and telecommunications, have approached NLMC to help monetise land parcels belonging to their wholly owned subsidiaries.

Established in 2022 under the Ministry of Finance, NLMC acts as a specialised agency dedicated to unlocking value from surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government bodies. Besides asset monetisation, the corporation also supports the closure of CPSEs and helps streamline the strategic disinvestment process for government-owned entities.

Under this framework, assets can be transferred to NLMC for management, holding, and eventual monetisation. The corporation also provides advisory services to various government organisations, helping identify non-core assets suitable for monetisation and ensuring the process maximises value in a professional and efficient manner. This dual mandate covers both assets formally transferred to NLMC and those handled through advisory support.

On Tuesday, NLMC organised a pre-bid meeting for the upcoming e-auction of a 5.119-acre land parcel owned by HIL (India). The reserve price for this property has been set at approximately ₹830 crore. This sale is part of NLMC’s ongoing asset monetisation pipeline.

The pre-bid meeting aimed to acquaint potential bidders with important details such as the location, key features, development potential, land-use regulations, eligibility criteria, and auction terms. Representatives from NLMC, HIL, and the transaction adviser CBRE India were present to provide information and address queries from interested parties.

This initiative fits within a broader government push to monetise surplus land and non-essential assets held by public sector companies, thus improving fiscal health and enabling more focused use of resources. The creation of NLMC enables a centralised and specialised approach to asset monetisation, supporting government efforts to raise funds without resorting to additional borrowing or increasing taxes.

As India’s economy continues to evolve, efficient management of government assets plays a key role in fiscal consolidation and infrastructure development. The NLMC’s work on unlocking value from underutilised land and properties reflects a strategic approach to maximise returns from existing resources while providing PSUs with capital to reinvest in core business areas or support government priorities.

With a clear target for FY27 and a robust pipeline of assets, NLMC is positioned to be a significant player in the government’s asset monetisation strategy. The corporation’s expertise in valuation, transaction management, and market facilitation helps ensure transparency and optimal outcomes in these sales, which ultimately contribute to the government’s broader fiscal and economic objectives.