Govt sets stage for sovereign wealth fund

India is planning a major overseas shopping drive to ensure secured supply of scarce natural resources such as, iron ore, agriculture, and power to push the country's strategic and domestic needs.

India is planning a major overseas shopping drive to ensure secured supply of scarce natural resources such as, iron ore, agriculture, and power to push the country's strategic and domestic needs.

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The Cabinet on Thursday approved a comprehensive policy framework that includes setting up of specialised secretaries' panel headed by the cabinet secretary for quick decision making and cheaper credit to help companies acquire these scarce resources.

The government has also decided that a dedicated sovereign wealth fund would be set up in "due course" to fund such acquisitions.

Under the policy, powers delegated to the boards of Maharatna and Navratna - an elite group of government firms where the managements enjoy greater autonomy - will be enhanced for acquisition of raw material assets abroad.

"Coordinating Committee of Secretaries (CCoS) will facilitate quick and coordinated decision making, coordinate grant of concessional credit, recommend government funding and decide about the nature of the government funding on case to case basis," a statement said.

"The government to, in due course, will consider constituting a dedicated, sovereign wealth fund," the statement said.