<p>The finance ministry will move a cabinet note next week seeking to dissolve the specified undertaking of UTI (SUUTI) and transfer its assets to a new company which can tap the reserves of cash rich firms to help government meet its disinvestment target of Rs 40,000 crore this financial year.<br /><br /></p>.<p>Under the plan, the assets of SUUTI, estimated at around Rs 50,000 crore, will be pledged to the new government-owned company, which in turn can utilise the proceeds to buy government equity in state-owned firms.<br /><br />“The cabinet note will be moved next week for setting up the new holding firm,” a finance ministry official said on Thursday.<br /><br />Although the government has plans to raise Rs 40,000 crore from disinvestment in the current fiscal, it has not been able to make much headway because of uncertain market conditions.<br /><br />So far, it has raised only Rs 1,144 crore from stake sale in Power Finance Corporation (PFC).<br /><br /> There are some companies that have more surplus cash than their annual turnover. That surplus can be invested in some state-owned blue-chip companies.<br /></p>
<p>The finance ministry will move a cabinet note next week seeking to dissolve the specified undertaking of UTI (SUUTI) and transfer its assets to a new company which can tap the reserves of cash rich firms to help government meet its disinvestment target of Rs 40,000 crore this financial year.<br /><br /></p>.<p>Under the plan, the assets of SUUTI, estimated at around Rs 50,000 crore, will be pledged to the new government-owned company, which in turn can utilise the proceeds to buy government equity in state-owned firms.<br /><br />“The cabinet note will be moved next week for setting up the new holding firm,” a finance ministry official said on Thursday.<br /><br />Although the government has plans to raise Rs 40,000 crore from disinvestment in the current fiscal, it has not been able to make much headway because of uncertain market conditions.<br /><br />So far, it has raised only Rs 1,144 crore from stake sale in Power Finance Corporation (PFC).<br /><br /> There are some companies that have more surplus cash than their annual turnover. That surplus can be invested in some state-owned blue-chip companies.<br /></p>