8JUNE 2024TOP STORIESINDIA'S NBFC SECTOR RANKED AFTER US & UK: SBI REPORTSGUJARAT NOW HOME TO ASIA'S LARGEST BIOGAS FACILITYIndia's non-banking financial sector has ascended to become the third largest in the world, following only the United States and the United Kingdom, according to a recent report by the State Bank of India (SBI). This surge underscores India's financial sector's growing strength and resilience, which has shown remarkable adaptability in the face of various economic challenges over the past decade.Unlike traditional banks, non-banking financial institutions (NBFIs) do not hold full banking licenses and are restricted from accepting public deposits. Instead, they focus on providing loans to consumers and businesses, pivotal in fueling economic growth. The report highlights that the Indian banking system's ability to overcome domestic and international economic challenges has been crucial to this sector's growth.Key factors contributing to this success include improvements in asset quality and robust macroeconomic fundamentals. The Indian government and regulatory authorities have implemented numerous initiatives to create a level playing field for financial institutions. These efforts include merging banks to form stronger entities, infusing capital, enhancing governance practices, and broadening the reach and quality of financial services. The expansion of digital banking has also significantly contributed to the sector's growth.During the COVID-19 pandemic, the Indian government's proactive stance in maintaining the financial sector's stability was evident through substantial capital and liquidity buffers. The Reserve Bank of India (RBI) played a critical role by enforcing regulatory measures to ensure the sector's resilience against economic shocks. These measures have not only preserved stability but have also fostered growth and innovation within the sector. In collaboration with a prominent business conglomerate, Gruner Renewable Energy is poised to inaugurate Asia's largest Compressed Biogas (CBG) facility in Navsari, Gujarat, a substantial milestone in India's pursuit of renewable energy. With an estimated investment of about Rs. 220 crores, this initiative aligns closely with governmental efforts to expand renewable energy adoption nationwide.The flagship CBG plant in Navsari is designed to produce 44 tons of biogas per day (TPD) utilizing economical feedstocks such as paddy, press mud, cane trash, and organic fraction of municipal solid waste (OF MSW). It is projected to generate over 16,000 tons of biogas annually, significantly contributing to Prime Minister Narendra Modi's goals of enhancing energy independence and sustainability.Gujarat, known for its proactive stance in the green energy sector, has seen heightened interest from major Indian corporations investing in renewable energy projects. Since introducing the pioneering Hybrid Policy in 2018, the state has achieved an installed capacity of 1,373 MW in the wind and solar energy sectors, underscoring its leadership in diversifying the renewable energy portfolio.Utkarsh Gupta, Founder & CEO of Gruner Renewable Energy, emphasized the company's commitment to combating climate change and driving economic growth through sustainable energy solutions. "Since our inception in 2023, Gruner has been dedicated to mitigating climate risks by converting waste into biogas, promoting environmental sustainability. Plants like Navsari will play a crucial role in reducing India's reliance on fossil fuels, generating employment within the biofuel sector, and significantly reducing our crude oil import bill", Gupta affirmed.
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