India Targets ₹15,000 Crore From PSU Land Monetisation in FY27

India is stepping up efforts to unlock the financial value of surplus land and buildings held by government-owned companies, with the National Land Monetisation Corporation (NLMC) targeting ₹14,000–15,000 crore in asset monetisation transactions during FY27.

The corporation has already facilitated transactions valued at approximately ₹9,000 crore during the current financial year and expects to complete another ₹5,000–6,000 crore worth of transactions before March 2027.

The initiative forms part of the government’s broader strategy to make underutilised public assets economically productive. Rather than allowing surplus properties to remain idle, the government is seeking to bring them into the market through structured transactions, competitive auctions and professional valuation.

The programme also has implications for public-sector company finances. Monetisation proceeds can provide companies with additional resources to strengthen their balance sheets, reduce debt or support business restructuring.

NLMC’s Expanding Role in Public Asset Monetisation

Established in 2022 under the Ministry of Finance, the National Land Monetisation Corporation was created to facilitate the monetisation of surplus and non-core land and building assets held by Central Public Sector Enterprises (CPSEs) and other government entities.

The corporation works with asset-owning organisations to identify properties, conduct valuations, undertake due diligence, structure transactions and facilitate competitive sales.

Its role is particularly relevant because government-owned companies often hold substantial land and buildings that are no longer essential to their primary operations.

These properties may include industrial plots, vacant land, residential buildings, office complexes and other commercial assets.

The NLMC’s involvement is intended to improve the process of bringing these properties to market while ensuring transparent price discovery.

According to its chief executive, Rohan Chand Thakur, the corporation has completed transactions worth around ₹9,000 crore in FY27 and is targeting another ₹5,000–6,000 crore.

The additional transactions could take the total value facilitated during the financial year to approximately ₹14,000–15,000 crore.

However, transaction value should not automatically be interpreted as cash already received by the government or the asset-owning companies. Payments relating to some completed transactions may still be under processing.

MTNL, BSNL and RINL Assets Enter the Monetisation Pipeline

Several major public-sector companies are part of the corporation’s asset pipeline.

These include Mahanagar Telephone Nigam Limited (MTNL), Bharat Sanchar Nigam Limited (BSNL), Rashtriya Ispat Nigam Limited (RINL), Indian Telephone Industries Limited (ITI) and Hindustan Insecticides Limited (HIL).

For companies carrying significant financial obligations, the sale of surplus properties can create an additional source of funds.

MTNL is particularly relevant because the telecom company has faced substantial debt-related pressures. Its valuable land and property holdings in Delhi and Mumbai have attracted attention as potential assets for monetisation.

The government is also examining additional MTNL properties that could generate several thousand crore rupees over the coming years.

BSNL, meanwhile, has properties that could be considered for monetisation as part of the wider restructuring and asset-management exercise.

The process does not mean that all identified properties have been approved for immediate sale. Each asset must undergo the required valuation, approvals, due diligence and transaction procedures.

HIL’s ₹829 Crore Delhi Property Attracts Developer Interest

One of the prominent transactions in the current pipeline involves a 5.119-acre land parcel owned by HIL (India) Limited in the Najafgarh Industrial Area of New Delhi.

The property has a reserve price of approximately ₹829.69 crore and is being prepared for e-auction.

According to reports, developers including Godrej, Omaxe and M3M have shown interest in the property.

The pre-bid meeting was organised to explain the site’s location, development potential, land-use provisions, eligibility conditions and auction requirements to prospective participants.

The interest from real estate developers illustrates how surplus industrial land can attract a different category of investors once it is made available through a structured sale process.

For developers, such transactions can provide access to strategically located land for potential commercial or other permissible uses. The final development possibilities, however, depend on applicable land-use rules, planning permissions and regulatory approvals.

Visakhapatnam Auctions Demonstrate Competitive Price Discovery

The NLMC has also completed two phases of land e-auctions involving properties belonging to Rashtriya Ispat Nigam Limited in Visakhapatnam.

In the first phase, a land parcel with a reserve price of ₹312 crore generated bids worth ₹366 crore, representing a premium of approximately 17% over the reserve price.

The second phase, concluded on November 3, involved 114 successfully auctioned land parcels. These generated successful bids worth ₹218 crore, representing a 17.96% premium over their aggregate reserve price.

The second phase is particularly important because it marked the NLMC’s first end-to-end e-auction initiative.

The process covered asset preparation, transaction structuring, investor outreach, bidder facilitation and competitive online auctions.

These results demonstrate the potential of structured auctions to generate competitive bids for public assets. They also provide a practical example of how surplus land can be brought into the formal investment market.

The corporation has indicated that another auction round is planned for the remaining unsold land parcels, subject to the necessary approvals.

More Than ₹1,100 Crore in Additional Proposals Recommended

The government’s monetisation pipeline received another boost on November 5, when an Inter-Ministerial Group recommended proposals involving surplus land and building assets valued at more than ₹1,100 crore for consideration by the Cabinet-delegated Alternative Mechanism.

The group is chaired by the Secretary of the Department of Public Enterprises, with the Secretary of the Department of Telecommunications serving as co-chair.

The proposals primarily cover surplus properties belonging to Central Public Sector Enterprises.

The recommendations are part of the government’s efforts to identify underutilised assets and prepare them for market-facing transactions.

Importantly, these proposals have been recommended for consideration and approval. They should not be treated as completed sales or realised government revenue.

The additional pipeline indicates that the monetisation programme is expanding beyond individual high-value land transactions towards a more systematic approach to public asset management.

What Asset Monetisation Means for Public Finances

Asset monetisation and asset ownership are not the same as conventional government borrowing or taxation.

When a public-sector company sells a surplus property, it converts an existing asset into financial resources. The transaction can improve the company’s liquidity and potentially reduce the burden of maintaining unused properties.

For companies with substantial debt, proceeds may help strengthen financial positions, although the actual use of funds depends on the relevant transaction structure and company decisions.

The exercise can also bring previously underutilised land into productive economic use.

However, asset sales are generally one-time transactions. They cannot replace recurring revenue sources or solve long-term operational problems within financially weak public-sector enterprises.

The government must therefore balance the objective of unlocking value with the need to ensure that public assets are not sold below their economic potential.

Transparent valuation, competitive bidding, proper land-use assessment and clear transaction documentation will remain essential.

The Challenge of Turning Public Land Into Productive Capital

India’s asset monetisation programme has the potential to connect government-owned land with private investment and commercial development.

The presence of properties from telecom, steel, chemicals and other public-sector industries provides a wide range of possible opportunities for investors.

Nevertheless, successful monetisation requires more than identifying vacant land. Some properties may involve complicated ownership records, legacy legal disputes, infrastructure constraints or restrictions on development.

These issues can delay transactions and affect the final value realised.

The NLMC’s expanding role in valuation, transaction preparation and competitive auctions is intended to address some of these challenges.

The immediate FY27 target of ₹14,000–15,000 crore will provide an important measure of progress. More importantly, the quality of transactions and the productive use of monetised properties will determine the programme’s long-term economic contribution.

India’s public asset strategy is gradually moving towards treating surplus government land as an economic resource rather than simply an administrative holding. If the process remains transparent and commercially disciplined, it could unlock capital for public-sector companies while bringing underutilised properties into produ