Centre likely to go Canada way to set up SPV for land monetisation

Over the years, PSUs have been unsuccessful in selling their land assets due to pending litigation and lease terms

The government is studying several global sovereign-run land banks and may settle for a model similar to the one in Canada as it finalises setting up of a special purpose vehicle (SPV) for monetisation of assets of state-run companies.

The Department of Investment and Public Asset Management (Dipam) is studying the model of Canada Lands Company — a federal government entity that specialises in real estate and managing tourist destinations — and considers it ‘good’ to replicate in India, said a top government official.

In the Budget Speech, Finance Minister Nirmala Sithraman had proposed incorporation of a SPV that would carry out