FM launches National Investment Fund

Finance Minister P Chidambaram today launched the National Investment Fund aimed at using the disinvestment proceeds of public sector enterprises to fund social sector projects and partly to meet capital investment requirements in profitable public sector units.

The Fund has been set up with an initial amount of Rs 994.82 crore received from the sale of government equity in Power Grid Corporation of India. The government has appointed three fund managers, UTI Asset Management Company Pvt, SBI Funds Managemnet Pvt and LIC Mutual Fund Asset Management Company. The fund managers will initially operate for a period of two years, which is extendable on the basis of their performance.

Out of the total annual income, 75% of the annual income of the Fund will be used to finance selected social sector schemes which promote education, health and employment. The residual 25% will be used to meet the capital investment requirements of profitable and revivable Central public sector units.