Railway Accounts Department Examinations

Showing posts with label DIPAM. Show all posts
Showing posts with label DIPAM. Show all posts

Sunday, February 9, 2020

NIF - National Investments Fund


NIF - National Investments Fund

·         One of the sources of finance for Indian Railways Capex - Capital Expenditure

·         Established in 2005

·         Maintained by : DIPAM - Dept of Investments & Public Asset Management

·          Credits: Proceeds from disinvestment of CPSEs - Central Public Sector Enterprises.  Initially the proceeds are kept under Public Account of India.

·          Corpus(Amount) of NIF - Permanent nature.  That means  the money with the NIF is permanent in nature and is professionally managed to provide returns (income) to the Government without depleting its value (corpus) 

·         Managed by : Professional Managers such as SBI Funds Managment pvt ltd, UTI Asset Management Company ltd, LIC Mutual Fund Asset Management Company ltd.

·         NIF income- utilised for the following purposes.

1.       Subscribing - shares being issued by the CPSE on Rights basis or Preferential allotment of shares as per SEBI regulations  ( to ensure 51% ownership by the Govt)
2.       For capital infusion in Public Sector Banks & Public Sector Insurance companies to meet BASEL III norms.
3.       Investments in Regional Rural Banks/NABARD- National Bank for Agriculture & Rural Development/EXIM Bank - Export - Import Bank/IIFCL - India Infrastructure Finance Company Limited.
4.       Equity infusion in Metro Projects
5.       Investment in Bhartiya Nabhikiya Vidyut Nigam Limited (BNVNL) & Uranium Corporation of India Limited.
6.       Investment in Indian Railways towards Capital Expenditure.
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