Lack of CEO at NLMC delays Rs 28,000 crore land monetisation

The Centre's ambitious plan for monetising large tracts of land held by state-owned enterprises has failed to make much headway with the National Land Monetisation Corporation (NLMC) still to get a CEO, chairman and board members.
Enterprises have offered 4,300 acres of land worth ₹ 28,000 crore.

Officials aware of the matter told ET that many CPSEs and ministries have shared a list to offer their surplus lands for monetisation, including land owned by Hindustan Cables Ltd, MTNL, BSNL, Cement Corporation of India (CCI) and the defence ministry. It is waiting for approval from the authorities.

"The appointment of CEO and chairman was expected by the end of May. But there is some delay. This is keeping proposals on hold," an official privy to the matter told ET. The process is on and the government expects to complete it soon.

NLMC has been set up as a wholly-owned company of the government under the administrative jurisdiction of the finance ministry, with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of ₹150 crore. The union cabinet had approved it in March but the board is yet to be appointed.

Officials said that the company would hire about 35-40 professionals initially, with minimal full-time staff and professionals hired directly from the market on a contract basis, including government officials and professionals from the realty, banking, law and management sectors.

The chairman will be from the government and the CEO from the private sector, while the board of directors will be a mix of both.

"Till the board is functional and a chairman and CEO is appointed, no hiring can happen. One quarter is already gone," the official said.

As per the mandate, NLMC is expected to own, hold, manage and monetise surplus land and building assets of CPSEs under closure and the surplus non-core land assets of government-owned CPSEs under strategic disinvestment.