An Inter-Ministerial Group (IMG) has recommended asset monetisation proposals worth over Rs 1,100 crore for consideration and approval by the Cabinet-delegated Alternative Mechanism (AM). The proposals primarily involve surplus land and building assets of Central Public Sector Enterprises (CPSEs). They will now go before the AM.
The recommendations are meant to promote productive use of surplus and underutilised public assets while generating economic value for government entities.
Asset monetisation means creating new sources of revenue by unlocking the value of public assets that are unused or underused. These assets fall broadly into three classes. The first is land and buildings. The second is brown-field operational assets such as pipelines, roads and mobile towers. The third is financial assets, including equity shares, debt securities and hybrid or structured finance units.
Two bodies take the decisions. The Alternative Mechanism consists of the Union Finance Minister, the Minister of Road Transport and Highways, and the minister of the administrative ministry concerned. Below it sits the IMG, chaired or co-chaired by the Secretary of the Department of Public Enterprises (DPE) and the Secretary of the administrative department concerned. Its members are representatives of the Department of Expenditure, the Department of Legal Affairs, the Ministry of Corporate Affairs and the DPE's financial adviser, each not below the rank of joint secretary. The IMG can co-opt any other member as it sees fit.
The latest proposals belong to the government's wider asset monetisation programme. The programme aims to help CPSEs and other government entities realise the potential of surplus assets through systematic assessment, professional transaction preparation and competitive price discovery.
The National Land Monetization Corporation (NLMC) has a central role here. It is a wholly owned Government of India company under the administrative control of the Department of Public Enterprises in the Ministry of Finance, set up after an announcement in the Union Budget 2021-22. It works with ministries, departments and asset-owning entities on asset assessment, due diligence, valuation, transaction structuring and market-oriented monetisation. Its stated aims are better public asset management, transparency and maximum value from surplus assets, in support of investment and economic development.
The Union Budget 2025-26 identified monetisation of operating public infrastructure assets as a key means of sustainable infrastructure financing. It provided for a National Monetisation Pipeline 2.0 (NMP 2.0), meant to give public asset owners a medium-term roadmap and the private sector visibility on potential assets. The framework covers transfer of assets for a limited period, divestment of portions of listed entities to unlock additional capital, securitisation of cash flows and strategic commercial auctions. NMP 2.0 is divided into five stages.
Proceeds are allocated to four heads:
The Rs 1,100 crore recommendation is thus one link in a chain. The IMG screens proposals and the AM approves them. The NLMC helps structure transactions, and receipts are routed to the fund or entity that the nature of the asset and its owner determine.
With reference to the decision-making structure for asset monetisation proposals of Central Public Sector Enterprises (CPSEs), consider the following statements:
Which of the statements given above are correct?
Consider the following information about the National Land Monetization Corporation (NLMC):
| Aspect | Description | |
|---|---|---|
| 1. | Nature | Wholly owned Government of India company |
| 2. | Administrative control | Department of Public Enterprises in the Ministry of Finance |
| 3. | Origin | Set up after an announcement in the Union Budget 2025-26 |
In how many of the above rows is the given information correctly matched?
Consider the following statements:
Statement-I: Revenue share, premium, lease rental or royalty from monetisation projects implemented by a Central ministry is credited to the Consolidated Fund of India.
Statement-II: Proceeds from monetisation undertaken by PSUs accrue to the concerned PSU, and a similar norm applies to Major Port Authorities.
Which one of the following is correct in respect of the above statements?
