The government is likely to provide about Rs 8,200 crore (Rs 82 billion) to Unit Trust of India in the next fiscal to help the mutual fund tide over liquidity problems for its beleaguered flagship scheme US-64 and assured return schemes.

The financial package for UTI is yet to be finalised but the ministry of finance is considering budgetary allocation of about Rs 6,500 crore (Rs 65 billion) for US-64 and another Rs 2,700 crore (Rs 27 billon) for assured return schemes, official sources told in New Delhi on Thursday.

This is part of the Rs 14,561 crore (Rs 145.61 billion) package finalised by government for UTI.

The proposed Rs 6,500 crore (Rs 65 billion) bailout to US-64 is based on the assumption that all the investors would redeem their units, official sources said.

This is the pessimistic assumption that the finance ministry has drawn up.

The cash outgo may not be so high if investors stay with US-64 scheme, now renamed US-2002, sources said.

Moreover, the redemption problem would be eased if Sensex moves up and UTI makes profits on its flagship scheme.

Currently, the US-64 has a equity portfolio of over 55 per cent, while the rest is with debt. The UTI imbroglio stemmed after the value of equities fell due to market crash last year.

Similar is the case with Monthly Income Schemes of UTI, for which the government has estimated a total outgo of about Rs 2,700 crore (Rs 27 billion), sources said