The Kelkar panel has suggested the government think beyond selling stakes in public sector undertakings (PSUs), and opt for land monetisation to increase revenue. Through disinvestment, the government should raise Rs 30,000 crore this financial year, as well as in the next, it stated.
In the Budget, the government had set a disinvestment target of Rs 30,000 crore for this financial year.
The panel recommended the government set up a group to suggest an institutional framework and policy measures in this regard.
This, the report stated, would be in line with land monetisation policies followed in many developed countries. According to estimates, about 60 sick PSUs in the country together account for 20,000 hectares of vacant land.
“Over the next 24-36 months, there is yet another policy instrument for raising resources for development, and that is monetising the government’s unutilised and under-utilised land resources,” the committee stated.
These resources, it added, could finance infrastructure needs, particularly in urban areas. “The potential is considerable, given the under-utilised prime lands of PSUs, port trusts, the railways, etc,” the report stated.
This policy has been effectively utilised in many countries, including the US, France, Canada, Australia and China.
