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Home  » Business » Maruti proceeds not to go to NIF

Maruti proceeds not to go to NIF

Source: PTI
January 16, 2006 20:49 IST
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Over Rs 1,500 crore (Rs 15 billion) that the government will get from offloading its residual stake in Maruti Udyog Ltd will not go to the National Investment Fund, which was set up for parking proceeds from divestment of public sector units.

The government feels that since Maruti was no longer a public sector entity, divestment of its minority stake will not be parked in NIF, official sources said.

It implies that NIF will get money only if the government goes ahead with divestment in other public sector undertakings.

The money in the fund will be invested in the market, whose earnings will then be used for social sector projects and revival of public sector units.

The guidelines of the investment pattern are yet to be issued by an advisory board of NIF.

Finance Minister P Chidambram had last week said that divestment of non-Navratna PSUs was on track.

Government sold 8 per cent residual shares it holds in Maruti for Rs 1,567.60 crore (Rs 15.68 billion) to eight financial institutions.
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