Correct option is B
• The National Investment Fund (NIF) was established in 2005 to manage proceeds obtained from the disinvestment of Central Public Sector Undertakings (CPSUs).
• The disinvestment proceeds are mobilized into this corpus fund and are primarily utilized for developmental activities and fiscal purposes.
• These proceeds aim to support social welfare projects, capital investments, and infrastructure development, as well as strengthen the government's financial management strategies.
Additional Information:
• Initially, 75% of the fund was earmarked for social sector schemes to promote health, education, and employment, while the remaining 25% was used for capital investment in PSUs.
• Over time, the government amended its usage policy, allowing for flexibility in utilizing disinvestment proceeds directly for fiscal management and infrastructure development.
• NIF ensures the productive use of disinvestment revenues while aligning with economic and welfare objectives.
Other Options:
• CPSU profits are not transferred to the NIF; instead, they are remitted to the Consolidated Fund of India as dividends.
• GPF pertains to the retirement savings of government employees, unrelated to the operations or funding of NIF.
• This refers to schemes like the National Pension System (NPS), which deals with retirement benefits and not with disinvestment or the NIF.
