Tirupati Balaji Temple likely to invest in GMS

The central government’s Gold Monetisation Scheme may have hit a goldmine with the news that the investment committee of Tirumala Tirupati Devasthanams, which manages the Lord Sri Venkateswara Temple at Tirumala, will soon decide on a proposal to invest its huge reserves of gold. If cleared, the much-publicised scheme could literally be hitting a goldmine. The investment committee of the TTD has been entrusted with the task of taking a decision on the matter. Once the investment panel gives its nod, gold offerings made to the Lord Sri Venkateswara will be deposited in the monetization scheme. 

As of initial estimate from the temple authorities, the TTD has thus far deposited about 5.5 tonnes of gold in different nationalised banks. It earns about 80 kgs of gold per annum as interest. Till last year, the TTD held gold deposits of 4,500 kgs. Recently, it deposited another 1,000 kgs, taking the overall gold reserves to 5,500 kgs. Under the new scheme, the TTD is likely to earn not less than 120 kgs of gold per annum.  

The main attraction for the Tirupati Temple authorities stems from the fact of higher interest rate through GMS. At present, the gold deposits of the TTD with nationalised banks earn an interest of 1 to 1.5 per cent per annum. The TTD can bargain for a higher interest rate as under the new scheme the final rate of interest will be decided jointly by the banker and the depositor.