Government to set up “National Land Management Corporation”

Task Force on National Infrastructure Pipeline recommended to Finance Ministry of India

• The Task Force on National Infrastructure Pipeline recently submitted its report to the Finance
  Minister Smt Nirmala Sitaraman
• Under the report, the task force has recommended to set up National Land Management
  Corporation
• The National Land Management Corporation will help to monetize state-owned surplus lands in
  a systematic way

Key findings of the recommendations

• Such a corporation should be set up under Companies Act to function as the facilitator for land
  monetization and an asset manager for lands owned by government of India and Central Public
  Sector Enterprises
• A chief executive officer (CEO) and a technical team should be hired at market-linked
  compensation to carry out land monetization
• Apart from a CEO and technical team, the Corporation should have representation from the
  Finance Ministry, Department of Public Enterprises, Ministry of Housing and Urban Affairs as well
  as independent directors from finance and real estate industry
• The Corporation can raise capital from the equity market, based on the value of its leased assets
• The panel recommended the Corporation consider development or co-development of land
  belonging to defense or railways as well
• It can also take up co-development of private land parcels adjoining government lands to
  maximize revenue

Highlights of Final Report of NIP Task Force

• The final report projects a total infrastructure investment worth Rs 111 lakh crore during the
  financial period 2020-25
• As per the report, out of the total projected capital expenditure worth Rs. 111 lakh crore
• Sectors including energy (24%), roads (18%), urban (17%) and railways (12%) amount to around
  71% of the projected infrastructure investments in India
• The centre (39 percent) and state (40 percent) are expected to have an almost equal share in
  implementing the projects, while the private sector has 21 percent share
• The final report highlights and identifies recent trends in infrastructure in India along with
  global trends
• It also reports the progress, deficit and challenges faced by the sector
• The final report also highlights reforms that are required to scale up infrastructure investments
  in various sectors throughout the country
• It also suggested the ways and means of financing the National Infrastructure Pipeline through
  deepening Corporate Bond markets, including Municipal Bonds and setting up of development
  financial Institutions for the infrastructure sector, accelerating monetization of Infrastructure
  Assets and land monetization

What is “National Infrastructure Pipeline“?

• It is a first-of-its-kind government exercise to pave the way for world-class infrastructure across
  the nation and improve the quality of life of the people
• It aims to improve infrastructure project preparation and attract new investments both foreign
  and domestic
• The project will play a significant role in fulfilling India’s goal of becoming a $5 trillion economy
  by FY 2025
• Its report has been made based on the information collected from various stakeholders including
  the concerned ministries, departments, state governments and private sector
• The NIP project database would be made available on India Investment Grid (IIG) soon to provide
  visibility to the NIP and help in its financing
• All the prospective investors will be able to access updated project-level information on the grid

Pic courtesy : currentaffairs.gktoday.in