The National Land Monetisation Corporation (NLMC) helped Rashtriya Ispat Nigam Limited (RINL) raise ₹583 crore through the sale of its non-core assets at e-auctions carried out in two phases. NLMC concluded the second phase of the auction on Tuesday, mobilising ₹218 crore, the finance ministry said on Wednesday.
“The auction resulted in the successful sale of 114 land parcels, generating a total successful bid value of ₹218 crore, against an aggregate reserve price of ₹184.80 crore,” the ministry said in a press release. “The successful bids achieved an overall premium of 17.96 per cent over the aggregate reserve price, demonstrating competitive bidding and effective market-driven price discovery.”
NLMC had mobilised ₹366 crore in the first phase of the auction last month, when it sold 150 land parcels belonging to the public sector undertaking (PSU) in the steel sector.
“With the completion of both phases, a total of 264 land parcels have been successfully auctioned, generating an aggregate successful bid value of ₹584.33 crore, against a combined reserve price of ₹497.29 crore,” the release said.
Following the success of the two auctions, NLMC now aims to carry out the sale of land parcels belonging to HIL (India), formerly known as Hindustan Insecticides Limited. The asset monetisation agency on Tuesday held a pre-bid meeting for the e-auction of a 5.119-acre land parcel belonging to HIL (India), with the reserve price set at around ₹830 crore.
In the current financial year, NLMC aims to mobilise up to ₹15,000 crore through the sale of non-core assets of central public sector enterprises (CPSEs). It has already mobilised ₹9,000 crore so far this year through the sale of non-core assets belonging to Mahanagar Telephone Nigam (MTNL), Bharat Sanchar Nigam Ltd (BSNL) and ITI (formerly known as Indian Telephone Industries Limited), among others.
The asset monetisation company has a pipeline of non-core assets worth ₹5,000-6,000 crore belonging to MTNL, BSNL and HIL (India), among others.
The government set up NLMC in 2022 under the Department of Public Enterprises of the Ministry of Finance as a specialised agency to monetise surplus land and building assets of central public sector enterprises (CPSEs) and other government agencies. The corporation is also mandated to facilitate the closure of CPSEs and streamline the strategic disinvestment process of government-owned CPSEs.
Under the arrangement, assets are transferred to NLMC for holding, management and monetisation. The corporation also advises and assists other government entities, including CPSEs, in identifying surplus non-core assets and monetising them professionally and efficiently to maximise value realisation. Its mandate, therefore, covers both assets transferred to it and those for which it provides advisory and facilitation support.
