Govt To Provide Rs 500 Crore Cash Assistance To Uti

The government has decided to provide a cash assistance of upto Rs 500 crore to Unit Trust of India (UTI) in the current fiscal and has linked further support to milestone-based reforms in the mutual fund behemoth.

The package was finalised today after a series of meetings M Damodaran, chairman, UTI had with C M Vasudev, secretary, department of economic affairs and later with finance minister Yashwant Sinha.

According to finance ministry officials, UTI does not expect large redemptions once its flagship Unit Scheme - 64 shifts to the net asset value (NAV) mode from January 1, 2002.