New Delhi: The Centre has taken another step towards monetising surplus public-sector assets, with an inter-ministerial group (IMG) recommending proposals worth more than ₹1,100 crore for monetisation of surplus land and building assets owned by state-run companies.
The proposals, primarily concerning surplus land and buildings of Central Public Sector Enterprises (CPSEs), have been recommended for consideration by the government‘s Alternative Mechanism (AM), which will examine them before the monetisation process moves forward, subject to the necessary approvals.
The development was announced by the Ministry of Finance on November 5, 2026. The initiative is part of the government’s broader effort to unlock the economic value of surplus and underutilised public assets and facilitate their productive utilisation.
Inter-Ministerial Group Reviews CPSE Asset Monetisation Proposals
The Inter-Ministerial Group, responsible for reviewing the proposals, is chaired by the Secretary, Department of Public Enterprises (DPE), with the Secretary, Department of Telecommunications (DoT), serving as its co-chair.
The group examined proposals relating to the monetisation of surplus land and building assets belonging to various Central Public Sector Enterprises.
Following its review, the IMG recommended proposals valued at more than ₹1,100 crore to the Alternative Mechanism for consideration.
The proposals will now be examined by the government panel. The monetisation process can proceed after the required approvals are obtained.
The recommendation marks an important stage in the government’s effort to identify and unlock the value of assets that are no longer required for the core operations of public-sector enterprises.
Alternative Mechanism to Consider the Proposals
The Alternative Mechanism (AM) is the next approval stage for the proposals recommended by the IMG.
The proposals will be placed before the mechanism for consideration, following which the monetisation process can move forward in accordance with the prescribed approval procedures.
The recommendation by the inter-ministerial group does not itself mean that the assets have already been monetised. The proposals remain subject to consideration and the necessary government approvals.
The process is intended to ensure that surplus public-sector assets are evaluated and taken forward for monetisation through the appropriate institutional mechanism.
NLMC’s Role in Monetising Surplus Government Assets
During the review, the Inter-Ministerial Group also assessed the progress of asset monetisation initiatives facilitated by the National Land Monetisation Corporation (NLMC).
The NLMC plays a key role in unlocking the value of surplus land and other non-core assets belonging to Central Public Sector Enterprises and government entities.
The corporation assists ministries, government departments and asset-owning organisations at different stages of the monetisation process.
Its responsibilities include assessing available assets, conducting due diligence, undertaking valuation, structuring transactions and facilitating the monetisation process in coordination with the concerned ministries, departments and asset-owning entities.
Through these activities, NLMC helps identify suitable assets and prepare them for monetisation while coordinating with the organisations that own them.
Government’s Broader Push to Unlock Public Asset Value
The latest proposals are part of the government’s continuing asset monetisation initiative, which seeks to unlock the economic value of surplus and underutilised public assets.
A significant amount of land and other non-core properties held by government entities and CPSEs may not be directly required for their regular operations. The government’s approach is to identify such assets and facilitate their productive utilisation through structured monetisation initiatives.
The process involves examining the assets, assessing their value, undertaking due diligence and developing suitable transaction structures before taking them forward for approval and monetisation.
By bringing surplus land and buildings into productive use, the government aims to unlock their economic potential and improve the utilisation of public resources.
Key Details of the Latest Development
- • Total value of proposals: More than ₹1,100 crore.
- • Assets identified: Primarily surplus land and buildings.
- • Asset-owning entities: Central Public Sector Enterprises.
- • Reviewing body: Inter-Ministerial Group.
- • IMG Chairperson: Secretary, Department of Public Enterprises.
- • IMG Co-chairperson: Secretary, Department of Telecommunications.
- • Next approval stage: Alternative Mechanism.
- • Facilitating organisation: National Land Monetisation Corporation.
- • Announcement: Ministry of Finance, November 5, 2026.
The proposals will now be considered by the Alternative Mechanism, with further action dependent on the prescribed approvals.
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