National Investment Fund (NIF)

National Investment Fund (NIF) is the corpus into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized.

Setup

3rd November, 2005

First companies to get disinvested

1. Power Grid Corporation of India Limited

2. Rural Electrification Corporation Limited

Features

1. The corpus of the fund was to be of permanent nature

2. The fund is to be professionally managed in order to provide sustainable returns to the Government, without depleting the corpus.

3. NIF was to be maintained outside the Consolidated Fund of India.

4. 75% of the annual income of the Fund will be used to finance selected social sector schemes, which promote education, health and employment.

5. The residual 25% of the annual income of the Fund will be used to meet the capital investment requirements of profitable and revivable CPSEs that yield adequate returns, in order to enlarge their capital base to finance expansion/ diversification.

Utilization of funds

1. Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

2. Accelerated Irrigation Benefits Programme (AIBP)

3. Rajiv Gandhi Garmin Vidyutikaran Yojana (RGGVY)

4. Accelerated Power Development and Reform Programme

5. Indira Awaas Yojana and

6. National Rural Employment Guarantee Scheme (NREGS).