NBCC begins biggest land monetisation drive

STATE-run Navratna PSU NBCC (India) Limited has started the biggest land monetisation drive in the country, writing to 74 loss-making PSUs to seek details of spare land available with them so that a plan can be drawn up. Some of the loss-making PSUs such as HMT, NTC, Hindustan Photofilms and ITI hold more than 100 acres of prime land in metro cities. NBCC has...
written to all loss-making PSUs to share details of the land bank available with them, NBCC chairman Anoop Kumar Mittal said. "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 was quoted as telling a national financial daily.
NBCC has been appointed as the land management agency for disposing of land assets of such loss-making PSUs 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.
Recently, the Cabinet Committee on Economic Affairs (CCEA) had given an in-principle approval to strategic stake sale and divestment in about 20 companies. This followed recommendation from 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 (DIPAM) 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 shutting down of sick and loss-making PSUs 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 land of such closed units will be first offered to central government, followed by another central PSU, 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.
Last month, the cabinet had approved transfer of selected small parcels of HMT land at Bengaluru and Kochi to different government entities for their use in larger public interest.
NBCC, a Navratna PSU under the ministry of urban development, provides civil engineering construction services in wide gamut of projects of varied nature, complexities and at socio-political geographical locations, both at home and overseas, said a statement issued by the PSU. NBCC’s present arrays of operations are categorized into three main segments: project management consultancy (PMC), real estate development and EPC Contracting.