Tags:Economy
For Prelims: Asset Monetisation, Central Public Sector Enterprises (CPSEs), Inter-Ministerial Group (IMG), Alternative Mechanism, Value of recommended proposals, Assets involved, Approving authority, Facilitating body
For Mains: Asset monetisation, disinvestment vs monetisation, public asset management, NLMC, value unlocking
Source:
PIB
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- The IMG recommended asset monetisation proposals worth over ₹1,100 crore.
- Proposals involve surplus land and building assets of CPSEs.
- The Alternative Mechanism will approve the proposals.
- NLMC facilitates asset monetisation under the Department of Public Enterprises.
- NLMC was established following the Union Budget 2021-22 announcement.
Why in the news?
The Inter-Ministerial Group (IMG) has recommended asset monetisation proposals worth over ₹1,100 crore, primarily involving surplus land and buildings of Central Public Sector Enterprises (CPSEs), for approval by the Cabinet-delegated Alternative Mechanism. The National Land Monetization Corporation (NLMC) facilitates the process under the Department of Public Enterprises, Ministry of Finance.
Summary
- The IMG, chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT), recommended asset monetisation proposals worth over ₹1,100 crore.
- Proposals mainly involve surplus land and building assets of Central Public Sector Enterprises (CPSEs) identified for monetisation.
- The National Land Monetization Corporation (NLMC), a wholly owned Government company under DPE, Ministry of Finance, facilitates the monetisation process through professional transaction advisory, due diligence, and valuation.
Highlights
IMG recommends ₹1,100 Cr CPSE asset monetisation
The Inter-Ministerial Group has recommended proposals worth over ₹1,100 crore for monetisation of surplus land and buildings of CPSEs.
Approval by Alternative Mechanism
The recommendations will be placed before the Cabinet-delegated Alternative Mechanism for consideration and final approval.
NLMC facilitates the process
The National Land Monetization Corporation, under the Department of Public Enterprises, Ministry of Finance, handles assessment, valuation, and transaction structuring.
Background
The Government of India has been pursuing asset monetisation as a key strategy to unlock value from surplus and underutilised public assets. The Union Budget 2021-22 announced the creation of the National Land Monetization Corporation (NLMC) to professionally handle the monetisation of surplus land and non-core assets of CPSEs and other government entities.
Key Analysis and Impact
The IMG's recommendation of proposals worth over ₹1,100 crore indicates growing momentum in the asset monetisation programme. By focusing on surplus land and buildings of CPSEs, the government aims to convert idle assets into productive use, generate revenue, and support investment. The structured process involving professional due diligence, valuation, and competitive price discovery ensures transparency and value maximisation.
Way Forward
Following approval by the Alternative Mechanism, further monetisation activities will be undertaken as per prescribed procedures. The NLMC will continue to work with concerned ministries, departments, and asset-owning entities to facilitate the process. This initiative is expected to set a precedent for more systematic and efficient public asset management.
Background GK
Textbook concepts you need to understand this news
- Asset Monetisation
- The process of unlocking the economic value of underutilised or surplus public assets by leasing, selling, or otherwise transferring them to private or other entities for productive use, generating revenue for the government.
- Central Public Sector Enterprises (CPSEs)
- Government-owned corporations established by the central government, operating in various sectors, whose shares are held by the Government of India.
- Inter-Ministerial Group (IMG)
- A committee comprising secretaries from multiple ministries, formed to review and recommend policy or project proposals requiring coordinated inter-departmental action.
- Alternative Mechanism
- A Cabinet-delegated body, typically comprising a few ministers, empowered to approve certain types of proposals (e.g., asset monetisation, strategic disinvestment) to expedite decision-making.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: Over ₹1,100 crore asset monetisation proposals recommended by IMG
- Nodal Body: National Land Monetization Corporation (NLMC) under Department of Public Enterprises, Ministry of Finance
- Legal Point: Union Budget 2021-22 announcement for NLMC establishment
Don't make this mistake!
Examiners may confuse NLMC with other monetisation bodies like NITI Aayog or the National Investment and Infrastructure Fund (NIIF). They may also swap the roles of IMG (recommendation) and Alternative Mechanism (approval).
Write these in mains answers
- Asset monetisation, disinvestment vs monetisation, public asset management, NLMC, value unlocking
Stuck? Get it in one tap
The government has a team (IMG) that looks at unused land and buildings owned by public sector companies. They have picked proposals worth over ₹1,100 crore to sell or lease these assets. Another high-level group (Alternative Mechanism) will give the final go-ahead. A special company called NLMC helps do all the paperwork and find buyers.
- The IMG recommended asset monetisation proposals worth over ₹1,100 crore.
- Proposals involve surplus land and building assets of CPSEs.
- The Alternative Mechanism will approve the proposals.
- NLMC facilitates asset monetisation under the Department of Public Enterprises.
- NLMC was established following the Union Budget 2021-22 announcement.
- Economy: Public Sector and Disinvestment
- Governance: Government Policies and Interventions
Related concepts: Asset Monetisation, Central Public Sector Enterprises (CPSEs), Inter-Ministerial Group (IMG), Alternative Mechanism
Practice questions
Pick an answer, then read the explanation.
- Q1Medium
Which body facilitates the monetisation of surplus land and non-core assets of Central Public Sector Enterprises?
Explanation: The National Land Monetization Corporation (NLMC) is a wholly owned Government company under the Department of Public Enterprises, Ministry of Finance, established to facilitate monetisation of surplus land and non-core assets of CPSEs. NITI Aayog is a policy think tank, DIPAM handles disinvestment, and SEBI regulates securities markets.
- Q2Medium
Consider the following statements:
- 1.The Inter-Ministerial Group (IMG) has recommended asset monetisation proposals worth over ₹1,100 crore.
- 2.The proposals primarily involve surplus land and building assets of state government enterprises.
- 3.The Alternative Mechanism is a Cabinet-delegated body that will consider and approve the proposals.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct as the IMG recommended proposals worth over ₹1,100 crore. Statement 2 is incorrect because the proposals involve assets of Central Public Sector Enterprises (CPSEs), not state government enterprises. Statement 3 is correct as the proposals will be placed before the Cabinet-delegated Alternative Mechanism for consideration and approval.
- Q3Medium
What is the approximate value of the asset monetisation proposals recommended by the Inter-Ministerial Group?
Explanation: The IMG has recommended asset monetisation proposals involving assets valued at over ₹1,100 crore.
- Q4Medium
What is the primary objective of the government's asset monetisation programme involving CPSE surplus land and buildings?
Explanation: The asset monetisation programme aims to unlock value from surplus and underutilised public assets and facilitate their productive utilisation to support investment and economic development. It does not involve full privatisation of CPSEs, increasing their number, or permanent sale of assets.
Frequently asked questions
1. What is the value of asset monetisation proposals recommended by the Inter-Ministerial Group?
The IMG has recommended asset monetisation proposals worth over ₹1,100 crore.
2. Which body will approve the asset monetisation proposals?
The Cabinet-delegated Alternative Mechanism will consider and approve the proposals.
3. What is the role of the National Land Monetization Corporation (NLMC)?
NLMC facilitates the monetisation of surplus land and non-core assets of CPSEs through professional transaction advisory, due diligence, valuation, and competitive monetisation processes.
4. Under which ministry does the National Land Monetization Corporation (NLMC) function?
NLMC is under the administrative control of the Department of Public Enterprises, Ministry of Finance.
All sources
- Original5 November 2026 · Read story
