New Delhi: Eager to meet the government’s disinvestment target, the department of disinvestment (DoD) wants retirement fund manager EPFO to invest Rs 6,000 crore in exchange traded fund of PSU stocks. However, according to sources, EPFO is looking to invest only around Rs 1,000 crore.
According to sources, EPFO had told the DoD that it will start investing in exchange traded fund of PSU stocks from August 1. The finance ministry, however, feels that EPFO’s investment in ETF would give a good signal to foreign pension funds.
There is a feeling in DoD now that EPFO is dilly dallying on its commitment to invest in CPSE ETF. “They said they would invest from August 1, but have not yet come up with any proposal,” said sources in the finance ministry said.
Sources said that DoD, which comes under the finance ministry, had asked EPFO to put Rs 6,000 crore. “They saying it is too high. They say trade union representatives are not agreeing. They are okay with Rs 1,000 crore,” said sources.
EPFO is also insisting on a longer term track record of returns on CPSE ETF investments, which the disinvestment department feels is not possible as the fund has started operation only in March last year.
