Mumbai: ICICI Prudential Mutual Fund has launched the ICICI Prudential BSE Power ETF, offering investors an opportunity to participate in India's expanding power sector through an exchange-traded fund.
The New Fund Offer (NFO) opened on October 26 and will close on October 30, 2026, with a minimum investment of Rs 1,000.
ETF Tracks BSE Power Index
The open-ended ETF will track the BSE Power Index, providing exposure to companies involved in electricity generation, transmission, integrated utilities and heavy electrical equipment.
The index comprises heavy electrical equipment companies (40.6 percent), power generation firms (37.1 percent), transmission companies (13.1 percent) and integrated utilities (9.2 percent).
After allotment, investors can buy or sell ETF units on stock exchanges in lots of one unit.
Index Delivers Strong Historical Returns
As of September 30, 2026, the BSE Power Index delivered a compound annual growth rate (CAGR) of 20 percent over five years, 17 percent over three years and 8 percent over one year.
The index has 75.57 percent exposure to large-cap companies and 24.42 percent to mid-cap firms.
Major constituents include NTPC, Power Grid Corporation, Adani Power, Bharat Heavy Electricals and Tata Power.
India's Electricity Demand Expands
India's electricity consumption grew annually by 7.4 percent between FY21 and FY25, compared with the global average of 0.9 percent.
Per capita electricity consumption increased 53 percent, reaching 1,460 kWh in FY25 from 957 kWh in FY14.
Peak power demand touched 271 GW in May 2026, while the Central Electricity Authority projects demand reaching 459 GW by FY36.
Power Capacity Set To Rise
India's installed power capacity is projected to increase from 596 GW in 2025 to 1,154 GW by 2034.
The expansion reflects industrial growth, urbanisation and government initiatives supporting electricity infrastructure.
However, investors should consider sector concentration risks and market volatility before investing.
