Govt aims to garner Rs 15,000 cr from monetisation of realty, hotel assets

The Centre plans to monetise real estate assets worth an estimated Rs 15,000 crore, including several housing colonies in the national capital and eight ITDC hotels, under the National Monetisation Pipeline (NMP).

In the 'urban real estate assets' category under the NMP, the government has identified monetisation of seven colonies under redevelopment as well as development of housing/commercial units on 240 acre land in Ghitorni in the national capital.

Eight hotels of ITDC will also be monetised through different routes.

On Monday, Finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways.

The NMP lists out assets and asset classes, under various infrastructure ministries, which will be monetised over a period of time.

As per the document prepared by Niti Aayog, the urban real estate assets have monetisation potential of around Rs 15,000 crore during the financial years 2022-25.

In this category, the government has identified redevelopment of seven General Pool Residential Accommodation (GPRA) Colonies in Delhi.

These seven colonies are located in Sarojini Nagar, Naoroji Nagar, Netaji Nagar, Sriniwaspuri, Thyagraj Nagar, Mohammadpur and Kasturba Nagar. The total estimated investment on redevelopment of these seven colonies is Rs 32,276 crore, it added.

The Centre has also identified development of residential/commercial units on 240 acre land in Ghitorni (Delhi). In this project, 8,000 units of GPRA and 3,000 units for migrant construction workers will be developed. The estimated investment is Rs 15,000 crore.

"Ministry of Housing & Urban Affairs (MoHUA) owns and manages land through the Land and Development Office (L&DO)," Niti Aayog said in the report.

During the NMP period, seven projects pertaining to redevelopment of colonies are being envisaged.

"PPP based model is recommended for redevelopment of such GPRA projects cross subsidized through sale/lease of commercial BUA (built-up area).

"Proposed projects are real-estate projects which envisage mixed use redevelopment of a vacant tract/brownfield sites at prime locations in Delhi-NCR. They entail development of general pool residential accommodation and commercial office complexes in one of the most prime areas of the country through a self-funded mechanism," it added.

Considering the prime location and attractive commercial potential of the project, Niti Aaayog has recommended the development of these projects through private sector participation.

This will not only enhance the commercial and operational efficiencies but also ensure upfront / periodic consideration to the authority/ Ministry of Housing and Urban Affairs, the report said.

"Under a PPP based model for such projects, the entire land parcel should be transferred into an SPV owned by the Authority with requisite change of land use etc wherever required.

"Multiple statutory clearances are typically required for such Projects which should be pre-obtained by the Authority and housed in the SPV. The SPV should then be bid out under PPP mechanism through a transparent competitive bidding system," the report said.

Under the hospitality assets, the report said that "all 8 hotel assets of ITDC have been considered for monetisation during FY 2022 to 2025."

"Long-term leasing, divestment, long term OMT (operate, maintain and transfer) contract may be explored as potential models for monetisation to be ascertained on a case to case basis as per detailed asset level due diligence," it added.

India Tourism Development Corporation (ITDC) is under the administrative control of the Ministry of Tourism.

The eight hotels are -- Hotel Pondicherry, Puducherry; Hotel Kalinga, Bhubaneshwar; Hotel Ranchi, Ranchi; Hotel Nilachal, Puri; Hotel Anandpur Sahib, Rupnagar; Hotel Samrat, New Delhi; Hotel Ashok, New Delhi and Hotel Jammu Ashok, Jammu.