While the National Land Monetization Corporation is a good idea, it must deal with several challenges on various fronts. Explain (200 Words)
Refer - Financial Express
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IAS Parliament 3 years
KEY POINTS
· The setting up of the National Land Monetization Corporation (NLMC) is a progressive step in the quest to implement the government’s asset monetisation programme.
· There is a big opportunity for the government to earn revenue. If the property is sold, it would be equivalent to disinvestment; if leased out, it would provide a non-tax revenue flow.
· The NLMC is needed because it would otherwise be difficult for each entity or department to carry out the monetisation plan.
· Valuation is the biggest challenge when it comes to real estate. If land is to be sold, then we need to get the parcel valued and this is where there can be some difficulties.
· Despite all attempts being made by the government to bring in transparency in real estate transactions, there are still cash payments involved.
· The monetisation plan can also be linked with the government’s other priorities so that they are targeted towards specific segments.
· For instance, the government may be able to link bidders for a land parcel to a specific goal, say, affordable housing or a renewable power plant.
· A lower reserve price may be considered for some of these projects in the form of a subsidy.
Shobana Krishnasamy 3 years
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IAS Parliament 3 years
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