Explanation:

Government had constituted the National Investment Fund (NIF) in November, 2005 into whichthe proceeds from disinvestment of Central Public Sector Enterprises were to be channelized.

• The corpus of NIF was to be of a permanent nature and NIF was to be professionally managedto provide sustainable returns to the Government, without depleting the corpus.Government decided (17th January 2013) that the disinvestment proceeds, with effect from thefiscal year 2013-14, will be credited to the existing NIF which is a ‘Public Account’ under theGovernment Accounts and the funds would remain there until withdrawn/invested for theapproved purposes. It was also simultaneously decided that the NIF would be utilized for thefollowing purposes:
• Subscribing to the shares being issued by the CPSE on rights basis, Recapitalization of publicsector banks and public sector insurance companies, Investment by Government in RRBs/IIFCL/NABARD/Exim Bank, Equity infusion in various Metro projects, Investment in Indian Railwaystowards capital expenditure.
• Money raised through the Disinvestment ofthe PSUs is credited to the NIF.
• Only a part of the NIF corpus can be used to fund the Social Sector Schemes, rest has tobe invested so that the Permanent Corpus isnot depleted.