Power sector- Can be a Multi-Bagger!


We are the world’s 3rd largest producer and 2nd largest consumer of electricity. As of Oct 2020, our power capacity is 373.73 GW.

Power is the most crucial sector for any country as it’s impact many other sectors of the economy like infrastructure, iron, electrical, technology and many more for overall economic development.

Our power sector is most diversified as we can generate power through coal, natural gas, oil, hydro and nuclear, wind, solar, waste and agriculture. As we all know, Indian electricity demand increases every year.

By the year 2022, the contribution for the Indian power sector is 67 GW through wind power and 15 GW through biomass and hydropower, and solar energy is estimated to contribute 114 GW. The target for renewable energy is 227 GW by 2022.

The total installed capacity of power stations in India stood at 377.26 GW as of November 2020. Electricity production reached 1,252.61 billion units (BU) in FY20

As the government allowed 100% FDI in the power sector, the investment from the FII is for the span of 20 years from 2000 to 2020 total investment is US$ 15.23 billion, which is about 3% of total FDI in India.

As Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.

India’s retail investors mainly focus on investing in stocks like Tata Power, Adani Power, JSW Energy, NTPC, CESC and many more.

In today’s lifestyle ecosystem is surrounded by electricity, we as a nation still depended on rural demand, which means there is an immense opportunity available to develop around the rural area, which increases consumption of power.


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