Friday, December 2 2005 15:04 Hrs (IST) - World Time -

New Delhi: Government today (Dec 2,2005) ruled out a 'new model' for strategic sale of profit-making PSUs or setting up another Disinvestment Commission.

However, proceeds from minority stake sale in PSUs would be put into the National Investment Fund and the income derived from it would be utilised in funding social schemes and revamping PSUs, Minister of State for Finance S S Palanimanickam informed the Lok Sabha.

To a query on whether government was planning a 'new model' to administer the strategic sale of profit-making PSU by taking such firms out of their administrative ministries, the minister said "No such proposal is under consideration of the Government at present."

He also replied on the negative to a question on whether Government was considering another Disinvestment Commission or revival of the previous panel.

"It may be added that the Disinvestment Commission has been wound up in October 2004," he said.

To another query, the minister said Government have constituted NIF, which would be outside the purview of Consolidated Fund of India.

Proceeds of disinvestment would be canalised into the fund, which would be professionally managed by public sector mutual funds to provide a sustainable return without depleting the corpus, he said.

He said 75 per cent of the income from the fund would be used to fund social schemes and the remaining 25 per cent would be used to meet the capital investment of profitable and revival PSUs.