The government is proposing to set up a fund to acquire the fuel assets abroad. The fund will be similar to a sovereign wealth fund. This was stated by Coal minister Sriprakash Jaiswal while addressing a round table conference on the issues regarding overseas coal acquisition in New Delhi today.

Mr Jaiswal said even though Coal India Limited has surplus resources for investing outside, it is important to have financial support from the government for acquiring large assets abroad. He said that acquisition of coal properties abroad has assumed large significance in recent times in view of the domestic production constraints and growing demand by different sectors like steel and power.

He said the government has been encouraging both public and private sector companies to acquire energy assets abroad as the ministry is facing tough challenges in meeting the energy needs of the country.