24.09.2013 - India proposes new financial institution to fund overseas assets acquisition
The India government is considering creating a developmental financial corporation dedicated to fund mineral and energy acquisitions overseas. The structure of the new overseas investment corporation would be different from the previously considered sovereign wealth fund, which was rejected earlier this year by the Finance Ministry, the official said. In June 2013, the Finance Ministry informed government-owned companies, which included oil exploration and production major ONGC Limited, iron-ore miner NMDC and steel producer Steel Authority India Limited (SAIL), that the creation of a sovereign wealth fund to acquire overseas assets by drawing on India’s foreign exchange reserves would be risky given the government's high current account deficit (CAD)........................................Full Article: Source
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