New Delhi: Assets under management of the New Pension System are likely to touch Rs 20,000 crore by the end of 2012 from Rs 14,000 crore at present, a top official said on Wednesday.
"AUM (Assets Under Management) of the NPS (New Pension System) are likely to move up from Rs 14,000 crore now to Rs 20,000 crore by the year-end," NPS Trust Managing Trustee and Chief Executive Officer N R Rayalu said.
The NPS trust was set up in 2008 by the Pension Fund Regulatory and Development Authority (PFRDA) for taking care of the assets and funds under the NPS in the interest of the subscribers.
NPS is a crucial component of reforms in the Indian pension fund market whose valuation is estimated at Rs 13.72 lakh crore, he said at an Assocham event here.
He said pension funds can contribute immensely for development of infrastructure as the country plans to spend Rs 50 lakh crore during the 12th Five Year Plan (2012-17).
"Infrastructure projects are starved of long-term funds. Pension funds can be the biggest contributor for development of social and physical infrastructure," Rayalu said.
He called for spreading financial education to cover unorganised sector under the social security net after retirement. Only 13 percent of the workforce – mainly employees of the government and organised private sector – are covered by a pension scheme.