The Union Cabinet on Wednesday approved the setting up of a National Land Monetisation Corp (NLMC) to monetise surplus land and buildings of PSUs, that are being sold off or are on the verge of closure, and government agencies.

NLMC will be set up as a wholly-owned Government of India company with an initial authorized share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore, an official statement said.

"NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other government agencies," it said.

With the monetization of non-core assets, the government would be able to generate substantial revenues by monetizing unused and under-used assets, it said.?"At present, CPSEs hold considerable surplus, unused and under-used non-core assets in the nature of land and buildings.

"For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value. NLMC will support and undertake monetization of these assets," the statement said.

This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost the local economy and generate financial resources for economic and social infrastructure.

With PTI inputs.