Centre may set up agency to manage govt-owned lands

The government is weighing a plan to set up a National Land Management Corporation to facilitate monetisation of land and act as an asset manager for real estate owned by it and central public sector enterprises (CPSEs).

Apart from Railways and Defence, other government departments do not have a specialise dorganisation to handle commercial development of land.

There is a need for a separate authority which can work with various departments to utilise the surplus land assets effectively, said a government official. The objective is to set up an empowered organisation with competencies to carry out commercial exploitation of land, manage land concessions, as well as raise funds for re-investment in CPSEs and for infrastructure development. ‘Surplus’ land or property are those that are not needed or are not appropriate for provision of public service for which the agency owning the property is responsible. Land which is vacant and not planned for future service use may also be termed as surplus.

A National Land Management Corporation could be a systematic and specialised way of monetising land assets, unlock greater economic benefits for the government and also deal with the restricted supply of land, the official said.

A per initial plans, the Corporation, will use the special purpose vehicle (SPV) route to pursue land lease or concessions as a primary mode of commercial exploitation. However, option of sale of land may also beexplored, the source said. The SPV may be given a legal backing through an appropriate legislation. It will also consider development or co-development of land belonging to Defence or Railways if required by these agencies and also consider co-development of private land adjoining government lands so as to maximise revenue.