The government will provide Rs 1,200 crore to UTI-I in the next fiscal to close three assured return schemes."The budget allocation is for meeting some shortfall UTI-I faces in fulfilling its obligation in the three remaining assured return schemes," S B Mathur, administrator of UTI-I, said today.He said the assistance will go to the specfied undertaking of Unit Trust of India (SUUTI) or UTI-I during 2005-06. The funds are being provided under the head of non-plan expenditure.UTI-I still has assets worth over Rs 10,000 crore, mostly in equities, Mathur said, adding the fund will offload the shares in the market to recover some of the losses.The government has so far provided Rs 12,771 crore for US-64 and other assured return schemes by way of cash and issuance of bonds. Against this, the enhancement in the SUS-99 portfolio is only about Rs 2,900 crore.In addition to the issue of cash and bonds, the government has also guaranteed bonds issued by SUUTI worth Rs 8,470 crore for US-64 investors and Rs 6,159 crore for other assured return schemes.The centre had paid small investors owning up to 5,000 units at Rs 12 per unit of US-64 when its net asset value was only Rs 6.50. Investors were also given the option of tax-free bonds carrying a coupon rate higher than the prevailing market rate.
