How to Maximise Returns with National Land Monetisation Corporation (NLMC) process for high‑value assets
The National Land Monetisation Corporation (NLMC) process for high-value assets, such as those of BSNL and other telecom PSUs, involves a specialized, multipart valuation and transfer system to ensure transparent monetization and maximize asset value. Here are the key points about the NLMC process for high-value assets:
NLMC Process for High-Value Telecom PSU Asset Monetization
- Asset Identification and Categorization
- NLMC works with ministries and PSUs to identify surplus and non-core immovable assets suitable for monetization.
- High-value assets—typically those valued above ₹100 crore—are prioritized for expert handling due to their significant financial impact.
- Valuation by Empanelled International Experts
- NLMC appoints empanelled global valuation firms to conduct a comprehensive market-based valuation using methodologies such as Comparable Sales, Income Approach, and Discounted Cash Flow (DCF) analysis.
- The valuation encompasses physical inspection, title verification, market conditions, and prospective income potential.
- Market Rate Benchmarking
- Valuations are cross-checked against circle rates and guideline values to ensure alignment with local statutory benchmarks while maximizing monetization potential.
- Right of First Refusal and Priority Offering
- The assets are offered first to central government entities and public sector undertakings with a 90-day window to express purchase interest.
- Government entities need to submit an expression of interest with earnest money (typically 2% of asset value) and initiate internal approvals.
- Transparent Monetization and Competitive Bidding
- If government entities do not acquire the asset, NLMC proceeds with open public monetization routes, including auctions or direct sales to private buyers under transparent mechanisms.
- The process includes periodic disclosures and adherence to fair market practices to boost investor confidence.
- Use of Proceeds and Monitoring
- Proceeds from asset monetization are earmarked for debt repayment and capital expenditure for sector growth.
- NLMC monitors the entire process to ensure targets and timelines are met and transparency is maintained.
This methodical approach by NLMC ensures that high-value telecom assets are monetized efficiently, maximizing government revenue while supporting PSU restructuring goals.
