Question : Monetisation of PSUs’ Land

a)whether a large number of Public Sector Undertakings (PSUs) including sick units has a huge area of unutilized lands ;

b)if so, the details of Karnataka State in this regard;

c) whether the Government has any proposal to monetize the unutilized land of PSUs for their revival;

d) if so, the details thereof and the present status of the aforesaid proposal ;

e) whether the Government proposes to set up Public Sector Land Development Authority; and

f) if so, the details thereof along with the time by which the said authority is likely to be set up ?

(a&b) : In the course of strategic disinvestment, CPSEs often identify non-core assets (mainly land and buildings) which do not form part of the strategic disinvestment transaction and are demerged to a new entity having a mirror shareholding of the CPSE. These non-core assets are earmarked for monetization by the demerged entity. Assets of CPSEs under closure are also earmarked for monetization. BEML Limited under strategic disinvestment, has identified surplus land in Karnataka (approx.. 123.39 acres in Bangalore and approx. 401.23 acre in Mysore) which will be demerged and subsequently monetized. HMT Limited which is under closure, has also earmarked land of approx. 89.506 acre in Bangalore for monetization.

(c&d) : A framework for non-core asset monetization has been approved by the government. The program aims at unlocking the value of non-core assets which are in surplus, un-used or under-used (largely land, buildings and other immovable properties), with no clear and present plan for optimal use in near future. The framework envisages a multi-layer institutional mechanism comprising of Inter-Ministerial Group, Core Group of Secretaries on Asset Monetization and Alternative Mechanism for decision making. International property consultants are appointed for end to end support in monetization transactions.

(e&f) : In pursuance of announcement in Budget Speech for financial year 2021-22, the proposal for setting up a special purpose vehicle for monetization of non-core assets (surplus land and property) is under consideration of the Government.