No change in govt approach for UTI, IFCI restructure

NEW DELHI: The government''s approach towards restructuring UTI and IFCI would remain unchanged, despite announcement made by DoD on Thursday about the setting up of the GoM for restructuring these institutions.
This statement gave the impression that there would a departure in approach, and the new leadership at the finance ministry may extend doles to these institutions.
A small grant amounting to Rs 300 crore was given to UTI in the third and final supplementary demand for grant last year, but this time round, there would be no doles, according to finance ministry sources.
Instead, UTI would be required to stick to its timetable of liquidating its DRF and repaying the Rs 1,500 crore raised by it to meet redemption pressure by August 31, and become Sebi compliant by December 31, 2002.
UTI has so far not submitted its roadmap for cleaning up its act to the government, though it has in case of both IFCI and UTI.
Officials said that while the government was committed to taking care of unitholder/shareholder and developmental interest, capital support to these institutions would be based on well laid milestones for cleaning up the balance sheet.
Also, though the government would prefer to stand guarantees rather than infuse capital, capital infusion if any would be only through the sponsors rather than budgetary grants.