Vedanta to set up $10 billion fund to acquire govt assets: Anil Agarwal

Vedanta Resources Ltd's plan to set up a $10 billion fund to acquire state-owned firms has attracted interest from sovereign wealth funds and the corpus will be floated once the government invites price for firms such as BPCL or Shipping Corporation of India (SCI), its chairman said. Metals and mining magnate Anil Agarwal's group has expressed interest to acquire government stake in Bharat Petroleum Corporation Ltd (BPCL) and SCI, worth over $12 billion.

The fund will be made of Vedanta's own resources and outside investment. "We have a tremendous response for this, especially from the sovereign wealth funds," he said.

The idea is to create a fund with a 10-year life span that will use a private equity-type strategy, buying into companies and boosting their profitability before seeking an exit. Agarwal had previously stated that Vedanta would team up with London-based firm Centricus to create a $10-billion fund that will invest in stake sale of public sector undertakings.