Power sector to be attractive for investors, analysts
Mumbai: Government`s ongoing massive capacity addition in power sector through large-scale spending and the growing role of private players in the segment would make power-firms attractive for investors, analysts said today.
"The government spending in this sector is huge as it has identified power as a key focus area. Government has earmarked over 30 per cent of budgeted infrastructure spending, around Rs 6,665 billion, in the 11th plan in the power sector," Religare Capital Markets, Institutional Equity sales president Vipul Sanghvi told reporters here.
Government spending and huge supply shortage in the sector coupled with fast execution of projects would improve its growth prospects in the next few years, they said.
"India is going to face peak power shortfall for the next 3-5 years which creates a massive opportunity in power sector. The execution of projects is also picking up fast," Research Assistant Vice President at Religare Kunal Sheth said.
Positive factors such as Government spending, participation of private sector in execution of projects in the next five-year plan are expected to offer at least 25 per cent return to investors, they said.
The sector overall, including the sub segments of equipment suppliers and balance of power companies is going to see buoyant times for next 3-5 years in terms of order books, analysts said.
In private sector, the control over fuel supply will play a key part. Companies which have fuel supply tie-ups or control over captive mines, are attractive for investors, they said.
More from India
More from World
More from Sports
More from Entertaiment
- Is Akhilesh Yadav overlooking Muslims as Mulayam Singh alleged?
- DNA: Why did Navjot Singh Sidhu call BJP 'Kaikeyi’, Congress ‘Kaushalya’?
- 24 dead after boat carrying 40 capsizes in river Ganga in Patna; many still missing
- My father wanted me to be a man of character: Navjot Singh Siddhu
- Dr Subhash Chandra Show: What characteristics define a true leader?
- Abhishek Bachchan reveals the moment when Aishwarya Rai said 'yes' to him
- India vs England, 1st ODI: As it happened...
- India vs England, Pune ODI: MS Dhoni still the boss; convinces Virat Kohli with spot on DRS call — WATCH
- India vs England, 1st ODI: Ravichandran Aswhin steals the show with huge six — WATCH
- Petrol price hiked by 42 paisa per litre, diesel by Rs 1.03 a litre