The Centre on Wednesday notified the creation of the National Land Monetisation Corporation (NLMC), the Special Purpose Vehicle (SPV) that Finance Minister Nirmala Sitharaman had announced in the Union Budget 2021-22, to monetise the surplus land holdings of the government and public sector undertakings.

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Here are the key things to know about NLMC:

— The Cabinet, chaired by Prime Minister Narendra Modi, had on March 9 approved NLMC as a wholly-owned Government of India company and it falls under the administrative jurisdiction of the Finance Ministry.

— It will be set-up with an initial authorised share capital of Rs 5,000 crore and a paid up capital of Rs 150 crore.

— NLMC will carry out monetisation of government and public sector assets in the form of surplus, unused or underused land assets.

— The NLMC will also facilitate the monetisation of assets belonging to PSUs that have ceased operations or are in line for a strategic disinvestment, with the aim of unlocking the value of these land holdings. The surplus land and building assets of such enterprises are expected to be transferred to the NLMC, which will then hold, manage and monetise them.

— As an advisory body, the NLMC will support other government entities and CPSEs in identifying their surplus non-core assets and monetising them in an efficient and professional manner, to maximise value realisation.

— The NLMC is expected to act as a directory of best practices in land monetisation. It will recruit professionals, similar to other specialised government firms like the NIIF and Invest India, on merit to achieve this.

— As per the Economic Survey 2021-22, CPSEs have put nearly 3,400 acres of land for potential monetisation. Per Survey, the Railways and Defence Industries have the largest holdings of land.