Reliance, ICICI to manage Rs60,000-cr provident fund of coal miners

Reliance Capital Asset Management Company (RCAM) and ICICI Securities Primary Dealership have been selected to manage Rs60,000 crore provident fund corpus of coal industry workers.

The decision was taken at a meeting of the board of trustees of the Coal Mines Provident Fund Organisation (CMPFO)  chaired by coal secretary Anil Swarup, who is also the chairman of the CMPFO, in Kolkata on Thursday.

The two were selected from among four fund managers, including SBI Capital and UTI Securities, Swqarup said, adding that both RCAM and ICICI have emerged as the lowest bidders in the financial bids.

Earlier the four managers had qualified for the financial bid after clearing the technical round.

The CMPFO has 4.5 lakh subscribers and the current corpus of Rs6,000 crore is expected to increase to Rs6,200 crore after contract mining workers have been brought to the PF fold, sources said.

The CMPFO has brought about 62,000 contract coal workers to its fold

A parliamentary panel had pulled up CMPFO for its failure to formulate an appropriate policy for parking funds and had even suggested referring the matter to a central investigating agency.

The board of trustees of CMPFO also decided to transfer the pension amount to the accounts of the widows of the pensioners on submission of death certificates.

CMPFO functions as an autonomous organisation under the ministry of coal and administers under the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948, and various schemes framed there under.