The State Bank of India (SBI) has entered into an accord with Oman for the formulation of Indo-Oman Joint Investment fund. Under the new joint venture fund, the gulf nation will make investment in infrastructure, tourism, health, telecom, utility and urban infrastructure. The memorandum of understanding regarding the joint venture was signed between SBI and State General Reserve Fund of Oman.

 

Both the sides are likely to make an investment of $100 million over the next few years.  The contribution of investment can be raised to a maximum of $1.5 billion on mutually agreed terms and conditions. Report says that both the sides have plunged together to present their respective governments a Joint Comprehensive Proposal (JCP) as soon as possible.

 

After receiving the approvals from the governments, both sides will enter into a joint venture agreement (JVA) on mutually acceptable terms. The recently signed MoU will remain valid and effective for a period of two years counting from this month. Of course, the MoU can be extended for further period of time on mutual consent of both sides.