Karnataka government has constituted a high-level committee to explore the potential for monetising public assets, with a particular focus on land in and around Bengaluru. This initiative, aimed at generating significant non-tax revenues for the state exchequer, is spearheaded by a retired IAS officer, alongside a team comprising former Central Board of Indirect Taxes and Customs chairman, another retired IAS officer, and a professor from the Institute for Social and Economic Change (ISEC), Bengaluru. The committee’s operations will be overseen by the Additional Chief Secretary of the Finance Department, who will also serve as its secretary.
The committee’s mandate includes crafting a comprehensive roadmap for the transparent and efficient monetisation of state assets. The move aligns with the Karnataka government’s 2024-25 State Budget proposal, which envisions monetising approximately 25,000 acres of land in and around Bengaluru. This ambitious plan seeks to convert idle or underutilised land into valuable assets that can contribute significantly to state revenues.
The monetisation strategy is informed by recommendations from consultancy giant Boston Consulting Group (BCG), which is working with the state under the Invest Karnataka initiative. BCG’s insights are expected to guide the process, ensuring that the monetisation of these land parcels aligns with best practices and maximises financial returns. Initial land parcels identified for this project include strategic locations in Hoskote and Bidadi, which are earmarked for new township developments. These areas fall under the jurisdiction of the Bangalore Metropolitan Region Development Authority (BMRDA). Additionally, land managed by the Bangalore Development Authority (BDA) is also under consideration for inclusion in this monetisation scheme.
The committee is tasked with ensuring that the asset monetisation process is conducted with utmost transparency and adheres to timelines. Its recommendations will play a pivotal role in advancing the state’s revenue generation capabilities, potentially setting a benchmark for similar initiatives in other regions. As Karnataka embarks on this endeavour, the successful execution of this plan could redefine the state’s approach to asset management and fiscal strategy, positioning Bengaluru as a model for urban asset monetisation in India.
