The Finance Minister, Yashwant Sinha had made an announcement in the Budget speech that the UTI would float an offshore fund called, India Millennium Fund to attract funds for the Indian capital markets. The issue was earlier earlier scheduled for a launch in August.

UTI officials said the response to the SBI's mega-bond issue would give them an idea on the mood prevailing among the international investors. While the SBI's bond issue is targeted at NRIs, UTI would raise funds from foreign funds and international investors.

``During August, most of the fund managers are going for vacations, which will make it difficult to raisefunds. Besides, the government is not keen that both issues coincide or follow each other. Hence, priority has been given to the SBI issue,'' officials said.

The finance ministry has advised the UTI to wait till the SBI's bond issue gets through. ``We are expecting the capital markets to revive in the second-half of the current fiscal. The India Millennium Fund should be backed by a buoyant domestic stock market,'' officials say. The UTI has already launched six offshore funds successfully and now waiting for the capital markets to revive before taking the final plunge.

Though the size of the issue is still under discussion, officials say it would be anywhere between $ 250 million to $ 500 million. Besides, the Millennium fund, the UTI is also getting ready for its pension fund and insurance business.