nd str and n rastr              t re        9.17
               Mutual Funds (they are, UTI Asset              during the three year period were to be
               Management Company Ltd.; SBI Funds             used for selected social sector schemes.
               Management Company Pvt. Ltd.;                  Current Policy: In January 2013, the
               LIC Mutual Fund Asset Management               government approved restructuring
               Company Ltd.).                                 of the NIF and decided that the
          (d) 75 per cent of the annual income                disinvestment proceeds with effect from
               of the Fund will be used to finance            the fiscal year 2013–14 will be credited
               selected social sector schemes,                to the existing ‘Public Account’ under
               which promote education, health                the head NIF and they would remain
               and employment. The residual 25                there until withdrawn/invested for the
               per cent of the annual income of               approved purpose. It was decided that the
               the Fund will be used to meet the              NIF would be utilised for the following
               capital investment requirements of             purposes:
               profitable and revivable PSUs that             (a) Subscribing to the shares being issued
               yield adequate returns, in order to                 by the CPSE including PSBs and
               enlarge their capital base to finance               public sector insurance companies,
               expansion/diversification.                          on rights basis so as to ensure 51 per
          The income from the NIF investments was                  cent government ownership in them.
          utilised on selected social sector schemes,         (b) Preferential allotment of shares of
          namely the Jawaharlal Nehru National                     the CPSE to promoters, so that
          Urban Renewal Mission (JNNURM),                          government shareholding does not
          Accelerated        Irrigation       Benefits             go down below 51 per cent in all
          Programme (AIBP), Rajiv Gandhi                           cases where the CPSE is going to
          Gramin Vidyutikaran Yojana (RGGVY),                      raise fresh equity to meet its Capex 51
          Accelerated Power Development and                        programme.
          Reform Programme, Indira Awas
                                                              (c) Recapitalisation of public sector
          Yojana and National Rural Employment
                                                                   banks and public sector insurance
          Guarantee Scheme (NREGS).
       2. Restructuring of NIF: In November
                                                              (d) Investment by the government in
          2009, the governement approved a
                                                                   RRBs, IIFCL, NABARD, Exim
          change in the policy on utilisation of
          disinvestment proceeds. In view of the
          difficult situation caused by the global            (e) Equity infusion in various metro
          slowdown of 2008–09 and a severe                         projects;
          drought in 2009–10, a one-time exemption             (f) Investment in Bhartiya Nabhikiya
          was accorded to disinvestment proceeds                   Vidyut Nigam Limited and Uranium
          being deposited into NIF—to be                           Corporation of India Ltd.;
          operational for the fiscals 2009–12, which   51. The Prime Minister’s Office has been monitoring
          was furhter extended to 2012–13, in view         the CA          Capital xpenditure programme and
          of the persistent difficult condition of the     investment plans of selected Central Public Sector
          economy. All disinvestment proceeds                nterprises C S s since              . he purpose of this
                                                           exercise was to enhance investment in the economy,
          (in place of the income accruing out of the      utilizing the substantial cash surpluses that are available
          investment of the NIF corpus) obtained           with some of the CPSEs to drive economic growth.