The Hindu : Andhra Pradesh News : TTD's investment plans hit roadblock

Online edition of India's National Newspaper
Wednesday, Dec 22, 2004

Andhra Pradesh

Andhra Pradesh

TTD's investment plans hit roadblock

By Our Special Correspondent

TIRUPATI, DEC. 21. The reported move of the Tirumala Tirupati Devasthanams' trust board to invest the TTD funds in non-banking public sector financial institutions like IDBI, HDFC and UTI has reportedly suffered a setback, apparently due to the furore created on the issue following reports in a section of the press and the consequent public outcry it has triggered.

The TTD Board, which met at Tirumala today, with its chairman, T. Subbarami Reddy, presiding, is said to have wide-ranging deliberations on the issue in the context of the controversy created in the media and the political circles questioning not only the wisdom of the move but its safety and propriety as well. The Board Chairman later was at pains at the media conference to drive home the point that there was nothing ulterior behind the move and that it was being done in the best interests of the TTD.

Takes umbrage

Mr Reddy also sought to take umbrage under the G.O dt. 16.12.04 wherein the State Government had reportedly issued revised guidelines to the TTD on its investment policy. He said the revised guidelines permitted the TTD to invest its funds in the public sector banks rated "AAA'' and guaranteed by the Government. Explaining further the features of the guidelines, Mr Reddy pointed out that it also permitted the TTD to invest in RBI and Government bonds if the bonds are rated "AAA.''

He also sought to clarify that the two most important criteria being followed vis a vis the investment of the TTD funds were their safety and secondly the rate of interest on the date of investment either as deposits or in NSS or RBI securities. In view of the controversy the TTD is expected to go slow on the contentious move.

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