The funds has also set up a venture capital fund, "India Technology VentureFund" for investment in sunrise industries.

UTI chairman PS Subramanyam told reporters on the side lines of Ioscoconference that UTI has already approached the Reserve Bank of India and theSecurities and Exchange Board of India for getting the approval of theoffshore fund and expected the approval by the end of this year. TheMauritius-based fund, in which AMP has already contributed $100-million (Rs440 crore) and the rest by foreign investors and NRIs, would be marketed,promoted, serviced and appraised by UTI in the country.

"UTI would carry out the due diligence, project appraisal and managing theportfolio", Subramanyam said. On the Government's disinvestment programme,Subramanyam said UTI has enough funds to help the Centre meet its divestmenttarget of Rs 10,000 crore during the current fiscal.

UTI is flush with funds and would be interested in buying the Governmentstake as companies listed for disinvestment have good fundamentals and areworth investing in, he said.Subramanyam said UTI has invested in therecently-concluded disinvestment of Gas Authority of India (GAIL) throughthe global depository receipts issue. Any other good issues in future wouldbe subscribed by the fund, he said.UTI picked up $250,000 worth of sharesfrom the recent GDR offer made by GAIL. "We subscribed to the GAIL issuethrough an overseas open-ended fund, the India Growth Fund. We can subscribeto more such offers in the future through this fund," Subramanyamsaid.

Other domestic FIs and banks may also buy stakes in public sectorenterprises to help the Centre meet its divestment target for 1999-00, hesaid.The top brass of the finance ministry had held a meeting with the headsof FIs on November 13 to discuss various strategies to raise the targeteddivestment amount. Though several strategies, including setting up of aNational Shareholding Trust, were discussed, the meeting did not take afinal view on any issue since the finance minister was abroad.Heads of banksand FIs are slated to meet top officials in the finance ministry early nextweek to discuss the strategy in this regard, he said, adding that banks andFIs have the capacity to subscribe to the Government's divestmentprogramme.

The outcome of next week's meeting is expected to be more concrete. So far,the Centre has raised only a fraction of the 1999-2000 target.The UTI chiefsaid that the Government should offload shares that will offer goodreturns.UTI is also awaiting the passage of the Insurance RegulatoryAuthority and Development Bill in Parliament before finalising its forayinto life insurance sector, Subramanyam said. "We have done our home work.The details will be finalised once the IRDA Bill is passed."A consultant hasbeen appointed to survey the market and the report has already beensubmitted.

"We have initiated talks with probable partners. The deal will be finalisedonly when the Bill is passed as there can be many slips between the cup andthe lip," he said.On its venture capital fund, the UTI chairman saidcommitments of Rs 138 crore have been received from both NRIs and Indianresidents. "We expect to incorporate the asset management company by the endof December." UTI has tied up with Intech Securities to set up a Rs138-crore corpus.The fund would make investments in knowledge-basedindustries, he said. "We would not only invest but also provide somehand-holding in the shape of company formation and legal assistance.