SRINAGAR: Finance minister Dr Haseeb A Drabu on Tuesday asked the Jammu and Kashmir Employees Provident Fund Organisation (PFO) to diversify its investment portfolio of Rs 2200 crore corpus to achieve higher returns for welfare of government employees.
According to an official communiqué, Drabu said this while chairing the 78th meeting of board of trustees of the organization in which it was informed that the organization has a corpus of Rs 2200 crore, majority of which is invested in fixed deposits in J&K Bank. The minister, according to the statement, said that need of the hour was to utilize the “fairly large corpus” in a way that will be beneficial for employees as well as the government.
“Only a minimal amount should be kept in fixed deposits in banks and majority should be invested using different options viz GoI bonds, state bonds, infrastructure bonds, PSU bonds and others,” he said. Drabu also asked the organization to aim for cumulative return of 9.5 percent as against present return of 8.1 percent obtained from fixed deposits. “A blend of investment options will help in generating extra amount that will help you in times of distress or during times of low interest rate,” said Dr Drabu.
He also suggested constituting an investment committee of experts who will suggest best options available with the organization to invest the corpus. He, according to the statement, also approved Rs 10.44 crore budget for financial year 2015-16 for the organization.
Quoting Drabu, the spokesman said that there should be a provision in the budget for providing legal aid to workers in distress. “To further help the employees, purchasing of and dedicating three critical care ambulances for exclusive use of employees in Kashmir, Jammu and Ladakh respectively” Drabu according to the official said.