Social sector schemes to get proceeds from disinvestment

The proceeds from disinvestment of NHPC and OIL will be allocated for capital expenditure in identified social sector schemes, Finance Minister Pranab Mukherjee informed the Lok Sabha today.

"From April 2009, a total amount of Rs 4259.90 crore has been realised from the disinvestment proceeds of National Hydro Power Corporation Limited (NHPC) and Oil India Limited (OIL) and credited to the Consolidated Fund of India.

"The funds would be transferred to the National Investment Fund (NIF) and allocated for capital expenditure in the identified social sector schemes as decided by the Planning Commission/Department of Expenditure," Mukherjee said during Question Hour.

He said the government had decided that with effect from April 2009 to March 2012, the proceeds from disinvestment would be channelised into the NIF and would be available in full as one time exemption for meeting capital expenditure of social sector programmes.

"The money could be used to meet the cost for building hospitals, schools or universities," he said.

The government had constituted the NIF in November 2005 into which the proceeds from disinvestment of equity in PSU would be channelised.