PM pushes for $100b sovereign wealth fund

Tags: Plan

Singh to meet Chidambaram on modalities soon

The prime minister’s office does not agree with the finance ministry position that the country does not have enough foreign exchange to set up a sovereign wealth fund. Prime minister Manmohan Singh is keen on creating a $100 billion fund.

Finance minister P Chidambaram will soon meet the prime minister to discuss the next steps towards creating the fund. “Inputs from various ministries have been received. The prime minister will now give a final directive,” says an official.

At a recent meeting chaired by the prime minister’s principal secretary Pulok Chatterjee, finance ministry officials said that the foreign exchange was not enough for the fund.

India is among very few countries in Southeast Asia and the only Brics member not to have a sovereign wealth fund.

The main objective of such a fund is to look for energy assets abroad, besides fertiliser assets to boost domestic food production.

The PMO has suggested that the fund can be started with a corpus of $20 billion, to be raised to $100 billion in three years, “as and when” the government finds “energy and fertiliser assets worth buying into.”

Both the petroleum and fertiliser ministries have been asked to identify such assets. When set up, the fund and public sector firms will be asked to jointly bid for energy and fertiliser assets globally.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India must take the UN’s lead in recognising gay rights

    In what has by now become a matter of course, our judiciary again demonstrated that it is miles ahead of our government in terms of staying in tune wi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

Today's Columns

Urs Schoettli

Lee’s legacy will always guide Singapore

LEE Kuan Yew, the father of modern Singapore, died last ...

Rajgopal Nidamboor

Forget the past and embrace the present

It is all right to believe that one should always ...

Bubbles Sabharwal

Relationships and bitter realities

It’s a tangled web we spin The relationships we make, break ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture