Public sector fund managers to get NIF pie
The entire corpus of NIF would be divided among five public sector fund managers to ensure maximum returns, sources said.india Updated: Apr 06, 2006 17:37 IST
The government is understood to have roped in all public sector mutual fund companies to manage the National Investment Fund (NIF).
The entire corpus of NIF would be divided among five public sector fund managers to ensure maximum returns, sources said.
At present, consultations are on between the government and the mutual funds promoted by public sector financial institutions and banks on what would be the share of each, they added.
UTI and funds promoted by State Bank of India, Bank of Baroda, Canara Bank and LIC would be managing the NIF.
The NIF was set up in 2005-06. The fund will get money from disinvestment of small government shareholdings in non-navratna ublic sector companies.
Seventy-five per cent of the returns from the NIF will be used for funding social sector projects while the rest would be utilised for reviving ailing public sector companies.
According to Budget papers, Rs 3,840 crore is expected to flow into the NIF in 2006-07.
The cabinet has already approved sale of 10 per cent shares in National Mineral Development Corporation, which would bring in over Rs 3,000 crore. Along with the Power Finance Corporation Initial Public Offering the government is selling five per cent of its equity which will net Rs 500 crore.
Later in the year, the government plans to sell small shareholding in other public sector companies which would see the NIF swell.