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.

EDITORIAL OF THE DAY

  • It is for the market, not the government to decide the fares of private air carriers

    In a country where substantial lip service is paid to the glories of a free economy and laissez faire, there is enough evidence to suggest that in rea

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture