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[Lavanay]

The energy sector for the scheme broadly includes oil & gas, power and any other energy related generators, distributors or ancillary companies. The power sector has recently come into the limelight and has potential in the long-term on the back of the huge demand-supply gap. Thee government’s thrust by way of budgeted outlays enhances its visibility. Power transmission and distribution companies will benefit by the higher power generated and the government’s ambitious plans of ‘power for all’ by 2012. Domestic demand but also exports have been revenue drivers for power equipment and transformer companies, and provide good growth opportunities.

With the India growth story, demand for oil & gas is bound to rise although subsidies have pruned the growth of oil marketing companies. Nevertheless, they remain attractive bets in the long term. In the medium term, big IPOs in the energy and power sector are expected which will raise the prospects of this sector. With a huge domestic population and huge export opportunities, the demand for agri industry products is expected to remain strong. Further, the growth of organized retail space will augment the agri sector’s prospects. On the flip side, government regulations and lack of infrastructure can hamper the growth of these segments. However, there is potential in the long term for both these industries and the India growth story has a direct correlation with the performance of this scheme.