Centre Eyes ₹15,000 Crore from PSU Land Monetisation; Vizag Steel Plots Auctioned

In news

• The Centre aims to raise about ₹15,000 crore in 2026-27 from surplus land of Central Public Sector Enterprises (CPSEs).
• Deals worth about ₹9,000 crore are already finalised.
• The work is done by the National Land Monetisation Corporation (NLMC).

Key facts

Item	Detail
This year's pipeline	BSNL, MTNL, Rashtriya Ispat Nigam (RINL), HMT and Hindustan Insecticides, among others
MTNL	Land in Delhi and Mumbai worth ₹5,000 to 6,000 crore over two years
Andhra Pradesh link	180 plots of RINL in Visakhapatnam e-auctioned; first phase fetched ₹366 crore against a reserve of ₹312 crore

About NLMC

• Approved by the Union Cabinet in 2022.
• A wholly government-owned company under the Ministry of Finance.
• It monetises surplus land and buildings of CPSEs and government agencies.
• Focus on closed or loss-making PSUs and those under strategic disinvestment.

Monetisation vs disinvestment vs privatisation

Term	Meaning
Asset monetisation	Earning money from idle assets by sale or lease; ownership of the company stays with the government
Disinvestment	Selling part of the government's shares in a PSU
Privatisation	Selling majority control of a PSU to a private buyer

Why it matters

• Converts idle land into money for new infrastructure.
• Helps debt-ridden PSUs like MTNL and BSNL cut losses.
• Brings unused urban land into productive use.

Concerns

• Undervaluation of prime public land.
• Slow progress due to legal disputes and encroachment.
• One-time sale of assets that cannot be replaced.

Static connect

• National Monetisation Pipeline (2021): about ₹6 lakh crore from brownfield assets over FY2022 to FY2025.
• Budget 2025-26 announced a second Asset Monetisation Plan (2025 to 2030), targeting ₹10 lakh crore.
• RINL (Visakhapatnam Steel Plant): India's first shore-based integrated steel plant. The Centre approved a revival package in 2025.
• Tools of monetisation: InvITs, REITs, long-term leases and public-private partnership.

Exam relevance: UPSC Prelims and GS-3 (Economy, Resource mobilisation); APPSC, TGPSC (Economy, AP news).