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UTI eyes Rs 1,300 cr from offshore funds

Santanu Sanyal

CALCUTTA, July 10

THE Unit Trust of India (UTI) proposes to mobilise about Rs. 1,300 crores during its current accounting year (July to June 2000-01) under its various offshore funds. In 1999-2000, the total mobilisation under the offshore funds was around Rs. 300 crores or so against the target of Rs. 1,000 crores.

Under the venture capital fund, UTI proposes to mobilise both onshore and offshore funds.

Mr. B.G. Daga, UTI's Executive Director, told Business Line here today that in 1999-2000, it did not go for full float of the two offshore funds, namely, media funds and entertainment funds, in view of the unfavourable market condition.

``We partially called about $30 millions in first tranche,'' Mr. Daga said, pointing out that the balance $30 millions were proposed to be called under the second tranche in 2000-01.

He, however, pointed out that all other offshore funds in general performed well, ``beating the benchmark''. In India Fund alone, about $1 million was mobilised last year.

The total corpus of seven offshore funds under UTI amounts to Rs. 2,800 crores. These include India Fund, India Growth Fund, India Access Fund, India Debt Fund, India Public Sector Fund, Entertainment Fund and the Media Fund. Of these, India Debt Fund is to be discontinued soon.

UTI has set the total mobilisation target for 2000-01 at Rs. 20,000 crores, which is nearly 25 per cent higher over the actual mobilisation of Rs. 16,445 crores in 1999-2000. The total domestic sales have been targeted at Rs. 18,700 crores.

For 1999-2000, the total mobilisation target was Rs. 17,200 crores, including Rs. 1,000 crores under various offshore funds. The shortfall from the target was mainly due to low mobilisation under the offshore funds. The domestic mobilisation was as per t he target, he said.