India's Centre Recommends Monetisation of Surplus Public Assets Worth Over ₹1,100 Crore

The Centre has moved a step closer to unlocking the value of idle public property, with a government panel recommending the monetisation of surplus land and building assets of Central Public Sector Enterprises (CPSEs) valued at more than Rs 1,100 crore. According to the Ministry of Finance , the proposals will now go to the Cabinet-delegated Alternative Mechanism for final consideration and approval. The recommendation covers primarily surplus land and buildings belonging to CPSEs—assets that are no longer needed for their core business but can generate value if sold, leased or developed through a transparent process. ▪️Inter-Ministerial Group Recommends Asset Monetisation Proposals Worth Over ₹1,100 Crore for Approval by Cabinet-Delegated Alternative Mechanism ▪️Recommendations Cover Surplus Land and Building Assets of CPSEs; IMG Reviews Progress of Asset Monetisation Initiatives Facilitated by NLMC ➡️Want to know more? Read here: https://t.co/psBypnP5gE @FinMinIndia — PIB India (@PIB_India) November 5, 2026 An Inter-Ministerial Group (IMG), chaired by the Secretary of the Department of Public Enterprises (DPE) and co-chaired by the Secretary of the Department of Telecommunications (DoT), selected the assets for monetisation. The group has recommended the proposals to the Alternative Mechanism, the body empowered to approve such transactions. The Finance Ministry said the recommendations are an “important milestone” in its effort to unlock value from surplus and underutilised public assets and put them to productive use. “The proposals primarily relate to surplus land and building assets of Central Public Sector Enterprises (CPSEs) identified for monetisation,” the ministry said. Asset monetisation does not necessarily mean outright sale of a public asset. It can include leasing, development rights, long-term concessions or other transaction structures that allow the government or a CPSE to raise money while the asset is used more productively. In this case, the focus is on non-core assets—mainly surplus land and buildings. These are properties that a CPSE holds but does not require for its main operations. The government’s aim is to convert such dormant holdings into revenue or capital, rather than leaving them unused. The ministry said the programme seeks to help CPSEs realise the economic potential of surplus assets through “systematic assessment, professional transaction preparation and competitive price discovery.” The next stage is the Alternative Mechanism, a Cabinet-delegated panel consisting of the Union Finance Minister, the Minister of Road Transport and Highways , and the minister of the administrative ministry concerned with the asset. Once the Alternative Mechanism approves the proposals, further monetisation activity can begin under prescribed procedures. Until then, the assets have only been recommended for monetisation; they have not yet been approved for sale or lease. The IMG acts as the screening and recommendation body. It examines proposals received from asset-owning CPSEs, administrative ministries or empowered committees, and takes into account comments from the National Land Monetisation Corporation (NLMC) . The DPE serves as the secretariat for both the IMG and the Alternative Mechanism, coordinating the paperwork and analysis needed before an asset can move forward. The National Land Monetisation Corporation (NLMC) will oversee and facilitate the process. It is a wholly owned Government of India company under the administrative control of the DPE in the Finance Ministry. Set up following the Union Budget 2021-22, the NLMC helps government entities monetise surplus land and other non-core assets. Its work includes asset assessment, due diligence, valuation, transaction structuring and market-facing monetisation. In practical terms, the NLMC prepares an asset for the market: it checks ownership and legal status, values the property, decides how best to structure the transaction, and then helps attract competitive bids. The main purpose is to ensure that public assets do not remain idle. Surplus land in prime locations can remain unused for years, while the CPSE continues to bear maintenance and security costs. Monetisation is intended to convert that dormant value into funds that can support public-sector finances or development spending. The government also sees the process as a way to improve transparency. Instead of ad hoc disposal of public property, assets are assessed professionally and offered through competitive price discovery, which is expected to help secure better value. The Rs 1,100-crore-plus proposals will be placed before the Alternative Mechanism. If approved, the NLMC and the concerned CPSE or ministry will take the transaction forward according to the approved model, reserve price and bidding process. Assets below a threshold set by the Alternative Mechanism—except those transferred to the NLMC for monetisation—can be disposed of by the concerned ministry or CPSE. The latest recommendation also shows that the Centre wants to speed up the use of surplus public land and buildings, but the actual monetisation will depend on the Alternative Mechanism’s approval and the outcome of the subsequent transaction process.