Sovereign fund mooted for buying mineral assets abroad

The Fertilizer Association of India (FAI) has asked the government to create a $20-billion Sovereign Wealth Fund to acquire mineral assets abroad.

“We have asked the government to form a sovereign wealth fund to acquire fertilizer assets abroad in the wake of rising global prices and shortage of fertilizers on the domestic front,'' FAI said, quoting Chairman A. Vellayan.

When contacted, FAI Director General Satish Chander said, “Global suppliers, especially in the case of potash, have formed cartels and have been increasing fertilizer prices. This is leading to a rise in input costs and the domestic firms are left with no option but to share the burden with the farmer,'' he added.

The Working Group on Mineral Exploration and Development (other than coal and lignite) for XII Plan (2012-17) has emphasised on public-private partnership for the acquisition of fertilizer assets abroad.

The Planning Commission has also suggested setting up of a sovereign wealth fund with an initial corpus of $10 billion , mainly to invest in energy and mining assets abroad.

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Printable version | Jun 19, 2021 5:23:22 AM |

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