According to an industry report, the energy sector needs investments in the range of $120- $150 billion over the next five years. Only then will we be able to increase capabilities and improve technology. Recognizing the growing market and energy requirements in India, US energy majors too have shown keen interest in the energy sector.
Investing in Indian energy sector could hold great long-term investment potential. Thanks to strong economic growth, India’s primary energy demands will more than double by 2030. As a result, energy companies have begun to look attractive in terms of investment opportunity. What’s more, government policies have encouraged private investors to enter this segment.
India’s biggest thermal power generator, National Thermal Power Corporation (NTPC) is contemplating financing capital expenditure for power projects, coal mining and LNG business. Suzlon Energy has been a flag-bearer for Indian alt energy, though in recent times it has had its quality problems with its wind turbines. Operating in 14 countries, Suzlon is the fifth largest wind turbine supplier in the world.
Other prominent Indian energy / alt energy companies are Reliance Energy, Indian Oil Corporation (IOC), Gas Authority of India Limited (GAIL). Many of these of course of public sector or quasi public sector companies so don’t expect dramatic growth in these.
Gas discoveries of around 700 bcm in the last decade show significant prospects for the future.
If you are a long-term investor, then you should consider energy stocks.