An asset which is idle anddoes not generate any returns or revenue must be converted into cash is what in simpler and common parlance,does monetization (of land) denote. We have in the country several such PSUs, which due to fast changing economic scenario , global market conditions, drastic changes and tastes in general consumers and preferences for alternatives or even certain policies in isolation or in combination on the verge of closure or having already been wound up but have enough land surplus and lying idle thus being non- performing . Why not to put such land to various utilities and make them beneficial in various ways is the idea behind putting them on sale and converting into cash. Like this, the Government can get enough liquid revenue while the process will result in private sector investment andbuyers can put such land to multifarious utilities to boost local economies and become source for earning by more people. Hence, the process has an acceleration economic effect besidesbeing a strategy of any Government to reduce the fiscal burden and to get revenues to meet ever growing public needs.
To streamline the process, a mechanism of setting up of National Land Monetisation Corporation with an authorised share capital of Rs.5,000 crore and paid up share capital of Rs.150 crore with intent to monetise the surplus land and buildings of such PSUs which are being sold off , is a decision taken in the right direction by the Government. Since there is a wide spread of such assets in the country, the Corporation can ably manage such monetization besides the process entailing time and professional factors. It may be recalled that the Vajpayee Government had realised the importance of disinvestment due to changing factors and even had upgraded the Department of Disinvestment to a full – fledged Ministry, however, in 2004 Manmohan Singh Government, in its first among few decisions, shut down the Ministry merging it with the Finance Ministry. Needless to add, innocently or knowingly, surplus landpurchased for such PSUs when set up decades ago by the Government, are expectedly going to pay dividends, now.
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