To help its state-run companies pursue acquisition of oil, gas, coal, LNG and other raw material in other countries, India plans to start a sovereign investment fund.
The state owned Oil and Natural Gas Corporation Videsh Limited (OVL) had been told to pursue at least one major oil and gas asset every year. Ministries including Coal, Mines, Steel and Petroleum have held discussions with India’s Investment Commission to present their case for the creation of such a fund. Target companies are in countries such as companies in Russia, Qatar, and Saudi Arabia. OVL last year bought Imperial Energy Plc for $2.1 billion in India’s biggest energy acquisition.