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Journalism of Courage
In a dramatic bailout-cum-reforms package worth Rs 14,561 crore, the government today announced it would split the Unit Trust of India into two, one part of which would be privatised.
This part, UTI-2, comprises all UTI’s schemes that do not have any kind of guarantees, either on the principal or on returns, and adds up to around Rs 17,800 crore of investments, an amount that’s equal to over 42% of UTI’s current portfolio (including that of US-64) of Rs 42,000 crore.
Until it is sold, UTI-2 will be managed by a professional manager recruited from the private sector. The package will be used by UTI to meet all its obligations on US-64 as well as for the assured-returns Monthly Income Plan schemes (UTI-1).
While earlier guarantees on redemption will be honoured, the government will also offer more tax concessions not spelt out yet.
