A government panel suggested setting up a separate organization for land management in the country.
- To boost the infrastructure investment, a government panel had recently recommended setting up an apex land management body called theNational Land Management Corporation. This would help in monetizing the state-owned surplus land assets systematically.
- The body will work with various government departments including Railways and Defense Ministry to utilize their surplus land assets.
- The corporation will be set up under the Companies Act.
- It functions as a facilitator for land monetization and an asset manager for lands owned by the government of India and Central Public Sector Enterprises.
- To maximize revenue, the body will take up co-development of private land parcels adjoining government lands.
- The total expected capital expenditure for infra sector will be Rs 111 lakh crore in the next five years.
- When having income-earning inventory assets the Corporation will enable to raise the equity capital or debt from the market.
- These funds help in the development of surplus land assets and create a pipeline for developable assets.
Members of the Body
- To carry out land monetization, the task force has recommended that a chief executive officer (CEO) and a technical team be hired at the market-linked compensation.
- The task force also proposed that the Corporation should have representation from senior officials of Finance Ministry, Department of Public Enterprises, Ministry of Housing and Urban Affairs and independent directors from finance and real estate industry.
Functions of the Body
- The corporation manages the inventory of assets.
- Develops modern concession agreements for land development and sale, legal management of encumbrances of relating to land, development planning, design and bid process management.
- The Corporation will also entrust the operational requirements like a change of land usage and revenue management functions.
- Measures to strengthen the municipal bond market, deepening of corporate bond markets and setting up of Development Financial Institutions for the infrastructure sector.
- The Corporation adopts different models to securitize the pool of assets through structures like REITs and InvIT.
National Land Management Corporation can create a pipeline of income-yielding properties which can raise funds from the market.