New Delhi, Nov 25: UTI Asset Management Company has said it will introduce lucrative schemes to woo public sector enterprises (PSEs) which is having a huge surplus cash of about Rs 3,00,000 crore.
''Once the PSEs Boards give their nod, we will launch PSUs- oriented schemes to attract the huge surplus cash,'' UTI AMC Chairman and Managing Director U K Sinha told to the sources here. He, however, refused to elaborate the nature of the schemes. Currently, the company has 34 equity-based schemes.
The announcement is seen in response to the recent government's move which allows PSEs (Navratna and Miniratna) to make equity-related investments of up to 30 per cent of their surplus cash in public sector SEBI regulated mutual funds after putting in place requisite guidelines, procedures and control systems in consultation with their administrative ministries.
''Let us not fear to deposit in the MF, rather investing in the MF is a very good idea,'' Mr Sinha said.
Upstream major Oil and Natural Gas Corporation (ONGC) Chairman and Managing Director R S Sharma has already said it will get the board's approval by December-end for investing a substantial part of its surplus cash of Rs 19,000 crore in mutual funds (MFs) to increase its revenue.
According to Mr Sarthak Behuria, Chairman of the Standing Conference of Public Enterprises (SCOPE) as well as Chairman of IndianOil, the PSEs have a surplus cash of over Rs 3,00,000 crore currently.
''With a surplus of over Rs 3,00,000 crore, the public sector enterprises have a huge reserve at their disposal that can be invested judiciously to reap handsome returns,'' Mr Behuria said.
UTI AMC Country Head Karan Singh earlier this week said it is eyeing to double its asset under management (AUM) to Rs 70,000 crore by the end of this fiscal.
''We are looking at handling a business of Rs 70,000 crore by March 31, 2008,'' Mr Singh said. As on October 31 this year, the firm had AUM worth Rs 51,753 crore, against Rs 35,000 crore it had handled last fiscal.
He said the firm will scale up its number of outlets up to 120 from existing 79 to enhance its business, besides increasing its investor base from 80 lakh to one crore by this fiscal-end.