The Hindu Business Line : India Inc welcomes Investment Fund

INDIA Inc has welcomed the UPA Government's move to set up a dedicated National Investment Fund from the sale of minority stakes in both listed and unlisted profitable public sector companies.

According to Mr Onkar S. Kanwar, President, Federation of Indian Chambers of Commerce and Industry (FICCI), the Government's decision to delink disinvestment proceeds from the budgetary exercise would ensure that the Government's consumption expenditure could no longer be met from PSU sell-off proceeds.

"It will no longer be possible to repeat the old argument that disinvestment is like `selling off family jewellery to meet current consumption'," he said.

Mr Kanwar also said the investment fund, to be managed by the professional public sector fund managers, would prove instrumental in channelising funds to the debt and equity market.

"This would have a very positive impact on the stock market and we can, in the future, expect to see an increase in turnover and in, the number of quality scrips available for trading and furthering of the equity culture among retail investors."

Meanwhile, the President of the Associated Chambers of Commerce and Industry (Assocham), Mr Mahendra K. Sanghi, welcomed the decision to create a National Investment Fund and described it as a `reform friendly' move which will boost the capital market and help mobilise resources for the social sector.

Mr Sanghi also appreciated the Government's decision to list unlisted profitable public sector enterprises whose net worth exceeds Rs 200 crore.

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