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Mar 03, 2012, 01.56 PM IST | Source: CNBC-TV18

Cabinet may consider proposal to capitalise SUUTI next week

With the ONGC auction out of the way, the government is looking at other ways to raise revenues. Highly placed sources in the government have indicated that the Cabinet may consider the proposal to capitalise Specified Undertaking of The Unit Trust of India (SUUTI) next week itself, reports CNBC-TV18s Siddharth Zarabi.

Siddharth Zarabi

Economic Editor, CNBC-TV18

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With the ONGC auction out of the way, the government is looking at other ways to raise revenues. Highly placed sources in the government have indicated that the Cabinet may consider the proposal to capitalise Specified Undertaking of The Unit Trust of India (SUUTI) next week itself, reports CNBC-TV18s Siddharth Zarabi.

On the SUUTI recapitalisation, a decision is likely to be taken very shortly by the Cabinet possibly before the Budget itself.

The plan is to convert this SUUTI through a Cabinet approval into an asset management company. Therefore, the realisations there off will then get converted into the shares. SUUTI currently holds a blue-chip portfolio including ITC , Axis Bank and some other shares.

The entire idea really in some ways going by what has happened in ONGC is to somehow push through with the key proposals as far as disinvestment is concerned, during the current fiscal. But it may not really translate into an immediate transaction taking place within the remaining days of the current fiscal.

The beneficial impact, according to government officials, could be felt only in the next financial year. But for now the plan for the conversion of the SUUTI is possibly going to reach the Cabinet and a final call maybe taken well before the Budget itself.

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