Rs 500-cr Bailout Package For UTI

New Delhi, July 30: | Updated: Jul 31 2002, 05:30am hrs
The government has announced Rs 500-crore budgetary support to Unit Trust of India (UTI) as part of the Rs 8,007-crore supplementary demands for grants for the current financial year.

Introducing the first batch of supplementary demands for grants in the Lok Sabha on Tuesday, minister of state for finance Gingee Ramachandran said it will involve a cash outgo of only Rs 3,913 crore. Rest of the expenditure amounting to Rs 4,094 crore will be matched by savings by the concerned department or by enhanced recoveries and receipts.

The Rs 500-crore budgetary support provided for UTI is to meet the shortfall between assured repurchase price and net asset value of its flagship scheme US-64. The provision will enable the Trust to meet the shortfall between assured repurchase price and NAV.

The Trust had asked for over Rs 1,000 crore government support. The supplementary demands provided Rs 720 crore loan to Bharat Sanchar Nigam for implementing the village public telephone programme. The demands also apportioned Rs 200 crore for providing Central pool assistance to the North-Eastern region and Sikkim.A sizeable Rs 1,346 crore has been allocated to the urban development ministry for meeting expenditure on Delhi Metro Rail Corporation on matching loans from Japan Bank for International Cooperation. The finance ministry has earmarked Rs 125.44 crore towards additional expenditure in the external affairs ministry.