Centre recommends monetisation of surplus CPSE assets worth over ₹1,100 crore

The government has recommended selling surplus land and buildings owned by state-run companies. These are properties that public-sector enterprises no longer need for their core operations. The recommendation covers assets worth more than ₹1,100 crore. It matters because the government wants to unlock value from property that is not being used productively.

The assets are held by CPSEs and other government-owned entities. One concrete example is Rashtriya Ispat Nigam Ltd, or RINL, which operates the Visakhapatnam Steel Plant. NLMC has auctioned surplus plots belonging to RINL in two phases. The latest phase covered 114 plots, while 264 parcels have been auctioned overall.

The article does not provide a complete list of all companies whose assets are included in the latest recommendation. It identifies RINL as one example and refers more broadly to CPSEs and other government entities. The proposed sales must still receive approval from the Alternative Mechanism before proceeding.

In practice, monetising surplus land and buildings means finding value in government property that public-sector companies no longer need. The property can be assessed, legally checked, valued and offered through a sale process. The goal is to generate proceeds while putting underused assets to productive use. The article describes this as unlocking value from surplus, non-core assets.

NLMC helps make that process workable. Its responsibilities include asset assessment, due diligence, valuation and transaction structuring. It also prepares properties for monetisation and supports transparent, competitive processes. RINL’s surplus plots show how this works in practice. The corporation auctioned 114 plots in its second phase, generating successful bids worth ₹218 crore.

Monetisation is not limited to one auction. NLMC has already sold roughly ₹9,000 crore of land and expects another ₹4,000-5,000 crore from surplus land sales by the end of the fiscal year. The wider aim is to identify commercially viable opportunities across government-owned properties.

The government has so far raised ₹55,757.29 crore from stake sales in state-run firms and ₹6,366.93 crore through other asset monetisation initiatives. Together, these figures total ₹62,124.22 crore. This is the progress reported toward the government’s ₹80,000 crore target for fiscal year 2027, or FY27. The target combines disinvestment and public-sector asset monetisation.

Land sales are expected to add another ₹4,000-5,000 crore by the end of the fiscal year. NLMC chief executive Rohan Chand Thakur said this expected amount includes the ₹1,100 crore covered by the latest IMG recommendations. NLMC has already sold roughly ₹9,000 crore of land, according to the article.

If the expected ₹4,000-5,000 crore is realised, total reported proceeds would rise to roughly ₹66,124-67,124 crore, assuming the categories are added together. That would still leave approximately ₹12,876-13,876 crore to reach ₹80,000 crore. The proposed sales therefore support, but do not complete, the target.

The Inter-Ministerial Group has backed the proposed sales, but its recommendation is not the final approval. The proposals now go to the Alternative Mechanism, a group authorised by the cabinet to decide on such sales. Further transactions will proceed only after this group approves them. This creates a formal decision point before government assets are sold.

NLMC acts as the specialist agency supporting the process. It works with ministries, departments and asset-owning public-sector enterprises. Its responsibilities include assessing assets, conducting due diligence, valuing properties, structuring transactions and preparing assets for monetisation. It also facilitates transparent and competitive sale processes.

The RINL auctions show the agency’s role in practice. NLMC completed a second e-auction of surplus RINL land, with successful bids worth ₹218 crore for 114 plots. Across two phases, it auctioned 264 parcels. The proposed IMG-backed sales still depend on Alternative Mechanism approval, while NLMC continues preparing further opportunities.

Unused land and buildings can remain locked away when they are no longer needed for a public-sector company’s core work. Selling them can unlock their economic value and produce funds for the government. The article frames this as putting surplus property to productive use rather than leaving it underused. It also helps the government pursue its broader asset-monetisation target.

RINL provides a clear example. Its surplus plots were offered through e-auctions conducted by NLMC. The second phase sold 114 plots, producing successful bids worth ₹218 crore. Across two phases, 264 parcels generated total successful bids of ₹584.33 crore. These results show how dormant land can become a source of proceeds through an organised market process.

The wider opportunity is substantial. NLMC has already sold roughly ₹9,000 crore of land and expects another ₹4,000-5,000 crore by the end of the fiscal year. The government is therefore continuing to identify commercially viable surplus assets held by CPSEs and other entities.

Competitive auctions allow interested buyers to bid against one another instead of accepting a single predetermined offer. Reserve prices provide a minimum benchmark, while valuation helps estimate what an asset may reasonably fetch. Due diligence checks the property and its transaction conditions before sale. Together, these steps support a more transparent process and help the government seek better prices.

The RINL auctions demonstrate the mechanism. In the second phase, 114 plots received successful bids worth ₹218 crore, against an aggregate reserve price of ₹184.8 crore. The bids were almost 18% higher than that reserve price. Across both phases, 264 parcels generated successful bids of ₹584.33 crore against a combined reserve price of ₹497.29 crore.

NLMC provides the technical support behind these transactions. Its duties include assessment, valuation, due diligence, transaction structuring and preparing assets for sale. Competitive processes cannot guarantee a particular price, but the RINL results show how bidding can exceed the starting benchmark when buyers compete.

In this article, disinvestment refers to stake sales in state-run firms. The government reports ₹55,757.29 crore raised from those sales. A stake sale concerns ownership shares in a public-sector company. It can change how much of the company the government owns, while the company itself remains the entity involved in the transaction.

Selling surplus land and buildings is an asset sale. The property belongs to a CPSE or another government entity, but it is no longer required for core operations. NLMC helps assess, value and prepare such assets for sale. For example, it auctioned surplus RINL plots rather than selling stakes in RINL itself. Those auctions generated successful bids worth ₹584.33 crore across two phases.

The government counts both activities toward its broader FY27 goal. It has raised ₹6,366.93 crore from other asset sales and expects another ₹4,000-5,000 crore from surplus land. Thus, disinvestment sells company stakes; land monetisation sells specific non-core properties.