NEW DELHI: State-run real estate firm NBCC (India) Limited has kicked off the biggest land monetisation drive in the country, writing to 74 loss-making public sector companies to seek details of spare land available with them so that a plan can be drawn up.
“The land bank with these firms is estimated to be around 2.5 lakh acres. NBCC being a government company, the land transfer will not be an issue,” said a senior government official, who did not wish to be identified.
Some of the loss-making firms such as HMT, NTC, Hindustan Photofilms and ITI hold more than 100 acres of prime land in metro cities, the official said. NBCC has written a letter to all loss-making firms to share details of the land bank available with them, its chairman Anoop Kumar Mittal said.
“Once we have the estimates, we will look at various options to monetise these land parcels in consultations with the administrative ministry and the respective state-run firm,” he said.
NBCC has been appointed as the land management agency for disposing of real estate assets of loss-making firms and it will get 0.5 per cent of the value realised from disposal of such land as fee, subject to a cap of Rs 1 crore. “It will depend on the land availability, land use terms and other factors that how we will redevelop those land parcels,” said Mittal.
Last week the Cabinet Committee on Economic Affairs (CCEA) had given an in-principle approval to strategic stake sale and divestment in about 20 companies, recommended by the government’s premier think tank NITI Aayog. “In principle the cabinet has approved the recommendations with regard to some of the units. Specific cases would now come up after detailed examination,” finance minister Arun Jaitley had said.
The Department of Investment and Public Asset Management will take up each case separately and hold discussions with the respective administrative ministry about the suitability as well as modality of strategic sale.
Earlier this year, the government had come out with guidelines on closure of sick and loss making state-run enterprises and disposal of their assets, including land. The land management agency will determine the current land use and its suitability for industrial, manufacturing or some other purposes, the guidelines said.
The land of such closed units will be first offered to central government, followed by another central public sector enterprise, state departments and finally state government bodies, in that particular order. In case no offer is received within six months then disposal of immovable assets will be done through a transparent auction, the guidelines said.
Credits ET Realty