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Baroda BNP Paribas Mutual Fund has launched Baroda BNP Paribas Energy Opportunities Fund. This scheme will invest in power, battery and EV companies among others.
In a press release, Suresh Soni, CEO, Baroda BNP Paribas AMC said, “As India’s GDP is projected to grow by 1.9x times in the next 5 years, India’s demand for energy is also poised to grow 1.7x times. The fund is positioned to unlock profitable investment opportunities for investors from the developments in India’s Energy sector."
Between 2003 and 2023, Chinese energy consumption, per capita, surged from 1.5 megawatt hours (MWh) to 6.6 MW, reflecting strong growth tied to GDP expansion.
Similarly, South Korea’s energy consumption has closely mirrored its per capita rise in GDP. India is now on a similar growth trajectory, with broad-based energy demand across households, agriculture, industry, commercial establishments, and infrastructure, said the fund house.
Sanjay Chawla, Chief Investment Officer – Equity and fund manager of the scheme said, "Indian energy demand is a secular story that will be powered by the doubling of the size of India's middle class, lifestyle changes driven by higher incomes and energy transition. In addition, government’s focus on improving India’s energy security by more than doubling the share of natural gas to 15% of the energy mix by 2030 and boosting our coal security coupled with, the government’s plan to invite bids for 50 Gigawatt of renewable energy capacity annually between FY24-28 will see India’s solar power capacity grow 4X and wind power by 2.5X by 2031-32. These structural changes aim to open a whole vista of profitable investment opportunities for investors.