SWF for India (INOIC)

The Indian government is setting up a company- India Overseas Investment Corporation (INOIC) under the Finance Ministry on the lines of a Sovereign Wealth Fund (SWF) to lend financial muscle for securing access to overseas natural resources.

INOIC:

• It will be established as an NBFC under RBI with paid up capital of Rs. 10 Cr.
• Company can raise funds through rupee bonds with sovereign guarantee.
• Established out of - Surplus profit of PSUs
• Prime Objective- Access to critical natural resources including oil, gas fertilizers etc.
• Time Horizon- Long Term
• Financial Goals- Security of access more than return

# Conventional SWFs focus on better returns on foreign exchange reserves of central bank so INOIC aim will be slightly different from SWFs.