The government is likely to take a 'favourable' decision on enhancing the interest rate on Employees Provident Fund and the ministries of labour and finance are holding discussions on how to mobilise resources for it, Lok Sabha was informed on Monday.

"The government is looking into the matter for a favourable decision. Steps are being taken towards a favourable decision in this regard," Home Minister Shivraj Patil, who was replying to a question on behalf of Labour Minister Chandrasekhar Rao, said during Question Hour.

He said if the interest on EPF was 8 per cent, the present surplus fund with the EPF Organisation was sufficient. However, if it was 8.5 per cent, there would be a deficit of Rs 206 crore (Rs 2.06 billion). For 9 per cent, the deficit would be Rs 566.8 crore (Rs 5.668 billion)and for 9.5, it would be Rs 927.15 crore (Rs 9.271 billion).

Patil said the Central Board of Trustees of EPF had recommended interest rates of 9.5, and 9 per cent plus an additional Golden Jubilee Bonus interest of 0.5 per cent for the years 2002-03 and 2003-04, respectively.

In reply to a question, he said the government had so far not issued any notification on the rate of interest to be paid to EPF members for 2002-03, 2003-04 and 2004-05.

While refusing to comment on why the notification was not issued in the past three years during the NDA rule, Patil said the labour and finance ministries were holding parleys to see how to mobilise resources for giving an enhanced rate.

He said several employers had not contributed towards the EPF and action was being taken in this regard.