Finance Ministry to Push for Closure of Special National Investment Fund in First 125 Days

The Ministry of Finance is likely to propose delisting all existing shares under the Special National Investment Fund (SNIF) within the first 125 days of the new government formation, sources have told Business Today TV.

The SNIF was established in 2013 to channel proceeds from the disinvestment of Central Public Sector Enterprises (CPSEs) into social schemes. It aimed to meet the Securities and Exchange Board of India's (SEBI) requirement for a minimum public shareholding of 25% in listed companies. In companies where the government holds more than 75%, SNIF was used to divert excess government stakes.

Current CPSEs under SNIF include Andrew Yule & Company Ltd, Fertilizers & Chemicals (Travancore) Ltd, HMT Ltd, ITI Ltd, and Scooters India Ltd, for which disinvestment has not been completed.

"We will be floating a cabinet note to delist all the shares and close the fund. We are yet to decide how the shares proceeds will be used; it’s up to the core group of secretaries, " an official said.

The official also mentioned that the creation of SNIF was not effective and clear, which is why it has not been beneficial in recent years.

Recently, on March 12, 2024, the government transferred 27,36,405 equity shares of ITI to SNIF. A CAG audit in 2017-2018 found no information about SNIF's organizational structure, officials for disposing of shares, or even the owners of the fund.

With exit polls, including India Today-Axis My India, predicting a strong victory for the BJP-led NDA, a detailed 125-day policy agenda has been prepared for the new government. The Strategy Groups of Secretaries have submitted a detailed plan for "Viksit Bharat by 2047," set to accelerate once the new government takes office. Proposals have been submitted to the Cabinet Secretary after intra-departmental meetings.