Why in news?
GoI approved the creation of a National Land Monetisation Corporation to monetize surplus land holdings of CPSEs and other government agencies
What is Asset Monetisation?
- Process of turning a non-revenue-generating item into cash
- Land Monetisation:
- Land Monetisation involves the monetization of surplus land/buildings etc.
- State control significant land holdings. Monetization leads to efficient utilization of assets
- Monetization proceeds would boost public finances
- Increased land supply will moderate costs of real estate projects
Why Land monetization corporation?
- Identify surplus land & create a database for investors (Comprehensive inventory)
- CPSEs hold huge land assets. Single agency control leads to efficient monetization
- Land monetization requires specialized skills/expertise. Professional entity is better suited
Land monetization corporation (Challenges):
- Ministries/PSEs may be reluctant to demarcate land as surplus
- Absence of clear titles
- Ongoing litigation
- Muted investor interest
- Encroachment of government land. Eviction is a cumbersome process