 "New govt SPV likely to get powers to acquire and develop PSU land")
The new special purpose vehicle (SPV) for monetising assets of public sector enterprises may also get powers to acquire and develop land and other assets on a case-to-case basis, besides renting and leasing them out.
The National Land Monetisation Corporation will soon be set up under the Companies Act and be 100 per cent owned by the government. The entity will be able to rent, lease and develop assets to monetise them for a fee, an official said.
The authorised share capital of the SPV has been pegged at Rs 5,000 crore.
A note has been prepared for constituting such an entity, and would soon be tabled before the Cabinet, the official added.
The SPV would be entrusted with hiring experts, and will devise a process to monetise government buildings, land of public sector undertakings (PSUs) and government departments.
It will also undertake transactions. It will house experts to resolve disputes that have hampered sale of such properties.
As the SPV would get power to acquire and develop idle land assets of PSUs which can’t be sold, it would look at converting such lands into revenue-generating, and financially-viable projects.
The SPV would also provide advisory services to government departments that are facing difficulty or delays in monetising their assets.
“The structure of the land SPV has been decided after detailed deliberations with experts and assistance from the World Bank. Sustainability of such a model has been deliberated extensively, post studying international practices,” the official quoted above said.
In the Budget speech, finance minister Nirmala Sitharaman had proposed incorporating an SPV to monetise surplus land with government departments and PSUs.
“Monetising of land can either be by way of direct sale or concession or by similar means,” Sitharaman had said.
The Finance Bill has also created an enabling environment for the land SPV by possibly exempting stamp duty on transfer of immovable property by one government-owned company to another.
The National Land Monetisation Corporation will soon be set up under the Companies Act and be 100 per cent owned by the government. The entity will be able to rent, lease and develop assets to monetise them for a fee, an official said.
The authorised share capital of the SPV has been pegged at Rs 5,000 crore.
Also Read
The SPV would be entrusted with hiring experts, and will devise a process to monetise government buildings, land of public sector undertakings (PSUs) and government departments.
It will also undertake transactions. It will house experts to resolve disputes that have hampered sale of such properties.
As the SPV would get power to acquire and develop idle land assets of PSUs which can’t be sold, it would look at converting such lands into revenue-generating, and financially-viable projects.
The SPV would also provide advisory services to government departments that are facing difficulty or delays in monetising their assets.
“The structure of the land SPV has been decided after detailed deliberations with experts and assistance from the World Bank. Sustainability of such a model has been deliberated extensively, post studying international practices,” the official quoted above said.
In the Budget speech, finance minister Nirmala Sitharaman had proposed incorporating an SPV to monetise surplus land with government departments and PSUs.
“Monetising of land can either be by way of direct sale or concession or by similar means,” Sitharaman had said.
The Finance Bill has also created an enabling environment for the land SPV by possibly exempting stamp duty on transfer of immovable property by one government-owned company to another.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%