New Delhi, Oct 10: Government has earmarked about Rs 3,500 crore for foreclosing seven assured return schemes of Unit Trust of India but feels that cash outgo would be nominal going by the experience of flagship scheme US-64. "Though we have apportioned Rs 3,500 crore for foreclosing the seven UTI schemes, we don't expect much cash outgo particularly after majority of investors of US-64 opted for the 6.75 per cent tax-free bonds," a senior finance ministry official said here today.
The seven schemes, which would be repayed before their maturity date are monthly income plans of 1998 and 1999 (MIP-98 and MIP-99), Children Gift Growth Fund of 1986 and 1999 (CGGF-86 and CGGF-99), Rajlakshmi Unit Plan of 1994 and 1999 (RUP-94 and RUP-99) and Bhopal gas victims Monthly Income Plan of 1992.
Government has estimated a cash-outgo of Rs 6,500 crore for us-64 but it actually turned out to be less than Rs 2,000 crore as most investors opted for the tax-free bonds.
For the seven schemes coming up for foreclosure, the finance ministry has estimated a maximum Rs 3,500 crore outflow if all investors opt for encashment. Bureau Report