Centre Recommends Monetisation Of Surplus CPSE Assets Worth Over ₹1,100 Crore

(MENAFN- Live Mint) New Delhi: The Inter-Ministerial Group (IMG), a government panel, has backed the sale of surplus land and buildings owned by state-run companies, assets worth more than ₹1,100 crore, the finance ministry said on Thursday.

The proposals now go to the Alternative Mechanism, a group the cabinet has authorised to decide on such sales. Further sales will follow only after it approves them.

The push comes as the government works towards an ₹80,000 crore target for FY27 from stake sales in state-run firms and asset monetisation. So far it has raised ₹55,757.29 crore from stake sales and ₹6,366.93 crore from other asset sales, according to the Department of Investment and Public Asset Management's (Dipam) website.

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Separately, Rohan Chand Thakur, chief executive of the National Land Monetisation Corporation (NLMC), told Mint earlier that the agency expects to bring in another ₹4,000-5,000 crore from surplus land sales by the end of this fiscal year. That is on top of the roughly ₹9,000 crore of land it has already sold.

IMG is chaired by the secretary of the department of public enterprises (DPE) and co-chaired by the secretary of the department of telecommunications (DoT).

The latest recommendations come amid the government's broader push to unlock the value of surplus land held by CPSEs and other government entities. Many public sector enterprises hold land and buildings that are no longer required for their core operations but can potentially be put to productive use through monetisation.

NLMC has also recently concluded the second phase of the e-auction of surplus land parcels belonging to Rashtriya Ispat Nigam Ltd (RINL), which operates the Visakhapatnam Steel Plant, generating successful bids worth ₹218 crore from the sale of 114 plots on 3 November. The bids were almost 18% higher than the aggregate reserve price of ₹184.8 crore. With this, the corporation has auctioned 264 land parcels across two phases, generating total successful bids of ₹584.33 crore, against a combined reserve price of ₹497.29 crore, according to a finance ministry statement.

The expected proceeds come as the government pursues an ₹80,000 crore target from disinvestment and public-sector asset monetization in fiscal year 2027 (FY27). It has so far realized ₹55,757.29 crore from stake sales in public-sector entities and ₹6,366.93 crore through other asset monetization initiatives, according to data on the Dipam website.

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NLMC, the government's specialised agency for monetising surplus land and other non-core assets, is facilitating the process by working with ministries, departments and asset-owning public sector enterprises.

Its responsibilities include asset assessment, due diligence, valuation, transaction structuring and preparing assets for monetisation. The objective is to identify commercially viable opportunities and facilitate transparent, competitive processes to realise value from surplus government-owned properties.

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NLMC is a wholly owned government company under the administrative control of the DPE, Ministry of Finance. It was established following the announcement in the Union budget for 2021-22 to facilitate the monetisation of surplus land and other non-core assets of CPSEs and government entities.

The corporation provides transaction advisory, due diligence, valuation and other professional services to facilitate the monetisation process.

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