India, with $254 billion (Dh932bn) of foreign-exchange reserves, may create a sovereign wealth fund to help state companies compete for overseas energy assets with China, a government official said.
The oil ministry has formally asked the finance ministry to set up a fund using a part of the reserves, the official said, declining to be identified. The size of the fund is yet to be determined, he said.
"Such a fund would be very, very welcome if we are to compete with the Chinese," said RS Sharma, Chairman and Managing Director of state-run Oil and Natural Gas, India's biggest energy explorer.
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