Question

Into which fund, the proceeds from disinvestment of Central Public Sector Enterprises are channelized?
1. Public Fund of India
2. CAMPA Fund
3. National Investment Fund
4. Contingency Fund of India

Answer 1

Correct Answer - Option 3 : National Investment Fund

The correct answer is National Investment Fund.

National Investment Fund:

• The government had constituted the National Investment Fund in November 2005 into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized.
• The corpus of NIF was to be of a permanent nature and it is to be professionally managed to provide sustainable returns to the Government, without depleting the corpus.
• Selected Public Sector Mutual Funds, namely UTI Asset Management Company Ltd., SBI Funds Management Private Ltd. and LIC Mutual Fund Asset Management Company Ltd. were entrusted with the management of the NIF corpus.
• As per this Scheme, 75% of the annual income of the national investment fund was to be used for financing selected social sector schemes which promote education, health and employment. The residual 25% of the annual income of NIF was to be used to meet the capital investment requirements of profitable and revivable PSUs.