APRIL 20248TOP STORIESUP ON TRACK TO HAVE 100 CBG PLANTS: UNION PETROLEUM MINISTERINTERNATIONAL INVESTORS EXPRESSING INTEREST IN INDIA'S BOND MARKETSUnion Petroleum Minister Hardeep Singh Puri announced on Friday that Uttar Pradesh is on track to have 100 compressed bio-gas (CBG) plants soon. Speaking at the inauguration of a CBG plant, the Union minister underscored the importance of CBG plants in environmental conservation, enhancing farmers' income, and promoting energy self-sufficiency.Currently, the state hosts 10 CBG facilities. The newly inaugurated plant, established by Indian Oil with an investment of Rs 165 crore, will utilize 200 metric tons of agricultural residue, 20 metric tons of press mud, and 10 metric tons of cow dung daily. It is expected to produce approximately 20 metric tons of bio-gas and 125 metric tons of organic fertilizer daily, contributing to agricultural productivity enhancement.Puri expressed satisfaction with Chief Minister Yogi Adityanath's Green Hydrogen Policy, aimed at environmental preservation, and anticipated substantial investments in this sector. Plans are also underway to establish green hydrogen plants in Uttar Pradesh's Sonbhadra district, a district adopted by him.Highlighting the pivotal role of farmers in the energy sector, Puri associated them with the CBG plant's operations. He also recalled the inception of gas cylinder distribution in the country 60 years ago, emphasizing that under Prime Minister Modi's leadership, the number of gas connections has surged from 14 crores in 2014 to 32 crores presently. The Ujjwala scheme, launched in 2016, has provided free gas connections to 10 crore women, including 8 crore rural women, he added. As India's sovereign debt approaches inclusion in global bond indices, a diverse array of international investors, including long-term institutional funds in Japan, South Korea, and Taiwan, along with exchange-traded funds in Europe, are expressing interest in the domestic bond market.Anita Mishra, Head of Markets and Securities Services at HSBC India, noted a significant influx of clients, not only from major financial hubs but also from countries like Japan, Korea, and Taiwan. Indian bonds are set to be included in JP Morgan's GBI Emerging Markets bond index in June, while Bloomberg plans to incorporate them in its EM index from January 2025. Since JP Morgan's announcement in September, foreign investors have purchased nearly $9 billion of fully accessible government bonds.Vikas Jain, Head of India Trading, FICC, Bank of America, mentioned that the interest is coming from Foreign Portfolio Investors (FPIs) globally, and about five fund houses in Europe have launched ETFs focusing on Indian government bonds. The expectation is for a total flow of about $32-35 billion with the index inclusions.Ashhish Vaidya, Head of Global Financial Markets at DBS Bank India, estimates near-term inflows of $3-4 billion from inclusion in the Bloomberg EM index and anticipates $25 billion over the 10-month period following inclusion in the JP Morgan EM index. This heightened interest underscores the attractiveness of India's bond market to a diverse set of global investors.
< Page 7 | Page 9 >