Indian Railways Moves Towards Net Zero with Renewable Energy Push

Indian Railways has taken another step toward achieving its Net Zero goal by signing a 170 MW power purchase agreement (PPA) with the Madhya Pradesh government. This deal secures the cheapest solar power in India at ₹2.15 per kWh and strengthens the railway’s commitment to using renewable energy sources.

Indian Railways’ Renewable Energy Targets

Railways Minister Shri Ashwini Vaishnaw, speaking at the Global Investors Summit 2025 in Bhopal, emphasised the importance of renewable energy for Indian Railways. The government plans to complete 100% electrification by FY26 and is focusing on solar, wind, and nuclear power.

So far, Indian Railways has secured:

  • 4,260 MW of installed solar capacity
  • 3,427 MW of installed wind capacity

Additionally, the railways have tied up 1,500 MW of renewable energy to power its operations.

Nationwide Collaboration for Renewable Energy

The minister urged all states to share renewable energy, including solar, wind, hydro, and nuclear power, with Indian Railways. The Madhya Pradesh model, where power is directly supplied from Rewa Ultra Mega Solar Power Limited (RUMSL), is seen as a benchmark for other states.

Boost in Rail Infrastructure for Madhya Pradesh

The Indian government has allocated a record ₹14,745 crore for railway development in Madhya Pradesh for FY26. Railway expansion in the state has significantly improved, with track laying increasing from 29 km per year before 2014 to 230 km per year today—a 7.5x growth.

Key Features of the Rewa Ultra Mega Solar Power Limited (RUMSL)

  • Total Capacity: 1,500 MW
  • Location: Agar, Shajapur, Neemuch (Madhya Pradesh)
  • Power Supplied to Railways: 195 MW
  • Tariff: ₹2.15/kWh (Lowest in India)
  • Project Completion Target: December 2025
  • PPA Duration: 25 years

Railways’ Solar Installations Across India

Indian Railways is setting up solar projects at various locations, including:

  • Rooftop solar at stations and buildings: 203 MW
  • Bhilai: 50 MW
  • Rewa Ultra Mega Solar (RUMS): 400 MW
  • Bundelkhand Solar Park: 800 MW
  • Other solar projects: 2,807 MW

Sustainable Future for Indian Railways

The shift to renewable energy will help Indian Railways reduce carbon emissions, lower oil imports, and cut logistics costs. With plans to meet 10,000 MW of traction power needs by 2030, the railways remain committed to a green and energy-efficient future.

Conclusion

With expanding renewable energy adoption and record rail infrastructure investment, Indian Railways is on track to achieving a sustainable and eco-friendly future.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Ashok Leyland Targets ₹2,000 Crore Savings with Cost-Cutting and Growth Plan

Ashok Leyland, the Hinduja Group’s flagship company, is working towards a leaner financial structure to boost profitability. The company has already cut costs significantly over the past 2 years and now aims to save a total of ₹2,000 crore by March 2025.

After reducing expenses by ₹750 crore each in FY23 and FY24, it plans to save another ₹600 crore in the current fiscal year. Chief Financial Officer K M Balaji stated that the focus has shifted from just cutting unnecessary costs to optimising operations for better efficiency.

Strengthening Market Position Without Discounts

Executive Chairman Dheeraj Hinduja emphasised that the company will grow its market share through strong products and services rather than aggressive discounting. Ashok Leyland’s market share in medium and heavy commercial vehicles (MHCVs) rose to 29.4% in Q3FY25 from 28.3% a year ago. However, it slightly declined from 30.6% in Q2FY25.

The company remains committed to long-term goals, including higher profits, international expansion, and market share growth.

Cost-Cutting Strategies

To achieve savings, Ashok Leyland is using multiple strategies such as:

  • E-sourcing and commercial negotiations
  • Zero-based costing (analysing each expense from scratch)
  • Teardown analysis of competitor products
  • Supplier negotiations and design optimisation to reduce vehicle weight without affecting performance

Despite a strong price recovery of 6-7% in FY23, increased competition limited price hikes to just 1% in the last financial year.

Improved Profitability and Margins

The company’s efforts have resulted in significant financial improvements. Its break-even point has reduced by two-thirds from FY21 to FY24, and standalone operating profit margins jumped from 4% in December 2021 to 13% in December 2024.

In Q3 FY24, Ashok Leyland’s standalone net profit rose by 32% year-on-year to ₹762 crore, while revenue increased by 2.7% to ₹9,478 crore. Operating margins stood at 12.8%, marking the eighth consecutive quarter of double-digit EBITDA margins.

Expanding Revenue Streams

Besides cost control, the company is also focusing on diversifying revenue sources beyond trucks. It is expanding businesses in:

  • Spare parts
  • Power Solutions
  • Defence sector
  • Exports

Conclusion

While future cost savings may become more challenging, Ashok Leyland remains committed to maintaining strong financial discipline, improving operational efficiency, and sustaining profitability.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Closing Bell: Sensex Falls 857 pts, Nifty Below 22,600 as IT Stocks Drag on February 24, 2025

The Indian stock market ended lower on Monday, with both the BSE Sensex and NSE Nifty50 dropping over 1%. The Sensex fell by 856.65 points (1.14%), closing at 74,454.41 after trading between 74,907.04 and 74,387.44.

Similarly, the Nifty50 declined by 242.55 points (1.06%), finishing at 22,553.35. It reached a high of 22,668.05 and a low of 22,518.80 during the session.

Top Gainers and Losers

The market saw 38 out of 50 Nifty50 stocks end in the red. Tech stocks led the losses, with Wipro, HCL Tech, TCS, Infosys, and Bharti Airtel declining up to 3.70%.

On the other hand, Mahindra & Mahindra, Dr Reddy’s Labs, Eicher Motors, Hero MotoCorp, and Nestle India gained up to 1.54%.

Broader Market and Sectoral Performance

  • Nifty Smallcap100 dropped 1.02%, while Nifty Midcap100 fell 0.94%.
  • Most sectors ended in the red, except Nifty Auto and FMCG, which managed to stay positive.

The market sentiment remained bearish as investors booked profits, leading to widespread declines across most sectors.

Oil Prices

As of February 24, 2025, at 03:45 PM, Brent Crude was trading at $74.40, down by 0.04%.

Conclusion

The stock market faced a broad decline on Monday, with major indices and most sectors closing in the red. Profit booking and weakness in IT stocks weighed on sentiment, while select auto and FMCG stocks provided some support. With global factors also in focus, investors will be watching key economic indicators for market direction in the coming sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Best PSU Stocks in March 2025 Based on 5-Yr CAGR: RVNL, HAL, BEL and More

Public Sector Undertakings (PSUs) have been a key pillar of India’s economy, contributing to growth while supporting the country’s energy, infrastructure, and industrial sectors. These government-owned companies operate across various industries, including energy, banking, utilities, and defence, playing a vital role in national development and government revenue generation. This article explores the top PSU stocks for March 2025, selected based on their 5-year CAGR, market capitalisation, and 1-year return.

Best Government Stocks in India March 2025 – Based on 5yr CAGR

Name Market Cap (₹ in crore) Close Price (₹) ↓5Y CAGR (%) 1Y Return (%)
Rail Vikas Nigam Ltd 77,500.20 371.7 73.56 42.77
Hindustan Aeronautics Ltd 2,25,276.86 3,368.50 55.7 14.26
Bharat Electronics Ltd 1,87,203.44 256.1 54.76 35.72
Bharat Dynamics Ltd 37,008.15 1,009.60 47 18.77
Bharat Heavy Electricals Ltd 68,391.21 196.41 41.11 -11.49

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their 5-year CAGR.

Overview of the Best PSU Stocks in March 2025

1.Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL) is responsible for executing various railway infrastructure projects assigned by the Ministry of Railways (MoR), including track doubling, gauge conversion, new lines, electrification, and major bridge construction. 

In the first half of FY 2025, RVNL reported a total income of ₹9,472.82 crore, down from ₹11,063.52 crore in H1 FY 2024. Its net profit also declined to ₹510.82 crore from ₹737.51 crore during the same period last year.

Key metrics:

  • Return on Equity (ROE): 15.71%
  • Earning per Share (EPS): ₹5.99

2. Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) specialises in manufacturing, repairing, and maintaining aircraft and helicopters. It is a Navratna PSU under the Ministry of Defence. 

In the first half of FY 2025, HAL’s total income rose to ₹11,60,255 lakh from ₹10,43,036 lakh in H1 FY 2024. The company’s net profit also increased to ₹2,94,763 lakh from ₹2,05,076 lakh during the same period last year.

Key metrics:

  • ROE: 27.83%
  • EPS: ₹129.35

3. Bharat Electronics Ltd

Bharat Electronics Ltd (BEL), a Navratna PSU under the Ministry of Defence, develops advanced electronic systems for the Indian Army. 

In the first half of FY 2025, the company reported a turnover of ₹8,530.43 crore, a 15.83% increase from ₹7,364.82 crore in the same period last year. Its profit after tax (PAT) rose by 39.03% to ₹1,867.41 crore, compared to ₹1,343.18 crore in H1 FY 2024.

Key metrics:

  • ROE: 28.55%
  • EPS: ₹6.79

4. Bharat Dynamics Ltd

Bharat Dynamics Ltd (BDL), a PSU under the Ministry of Defence, specialises in manufacturing guided missile systems and related equipment for the Indian Armed Forces. 

In H1 FY 2025, the company reported revenue from operations of ₹735.94 crore, down from ₹913.53 crore in H1 FY 2024. Its net profit declined to ₹129.75 crore from ₹188.91 crore during the same period last year.

Key metrics:

  • ROE: 15.16%
  • EPS: ₹15.43

5. Bharat Heavy Electricals Ltd

Bharat Heavy Electricals Ltd (BHEL), a leading integrated manufacturer of power plant equipment, specializes in designing, engineering, producing, installing, testing, commissioning, and servicing a wide range of products and services. 

For the 9 months ending December 31, 2024, the company’s total income rose to ₹19,662.15 crore from ₹16,022.21 crore in the same period of FY 2024. The company reported a PAT of ₹29.45 crore, recovering from a loss of ₹207.40 crore in the previous year’s corresponding period.

Key metrics:

  • ROE: 2.01%
  • EPS: ₹1.42

Best PSU Stocks in India – Based on Market Cap

Name ↓Market Cap (₹ in crore)
NTPC Ltd 3,16,353.73
Power Grid Corporation of India Ltd 2,43,582.81
Coal India Ltd 2,27,990.13
Hindustan Aeronautics Ltd 2,25,276.86
Bharat Electronics Ltd 1,87,203.44

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their market cap.

 

Best PSU Stocks in India – Based on 1-year Return

Name ↓1Y Return (%)
Rail Vikas Nigam Ltd 42.77
Bharat Electronics Ltd 35.72
Bharat Dynamics Ltd 18.77
Hindustan Aeronautics Ltd 14.26
Indian Renewable Energy Development Agency Ltd 6.64

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their 1-year return.

 

Advantages of Investing in Top PSU Stocks

  • Consistent Dividends

With government backing, PSUs maintain stable revenues, often leading to regular and dependable dividend payouts. This makes them a strong choice for investors seeking steady income.

  • Government Support

PSUs benefit from government assistance, ensuring stability during economic downturns. This support includes financial aid, policy advantages, and protection from major market fluctuations.

  • Strong Industry Position

Many PSUs dominate key sectors such as energy, transportation, and utilities, providing both stability and long-term growth potential.

Conclusion

PSU stocks offer reliable dividend income and potential capital appreciation. However, with numerous options available, thorough research is essential before making investment decisions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Adani Group to Invest ₹1.1 Lakh Crore in Madhya Pradesh; Another ₹1 Lakh Crore Planned

Adani Group has announced a massive investment of ₹1.1 lakh crore in Madhya Pradesh across various sectors, including pumped storage, cement, mining, smart meters, and thermal energy. This investment is expected to create 1.2 lakh jobs by 2030.

Speaking at the Madhya Pradesh Global Investors Summit 2025, Adani Group Chairman Gautam Adani highlighted the state’s transformation into a prime investment destination. He emphasised that these investments would play a key role in Madhya Pradesh’s economic and industrial growth.

Existing Investments and Future Plans

Adani Group has already invested over ₹50,000 crore in Madhya Pradesh across energy, infrastructure, manufacturing, logistics, and agri-business, generating 25,000+ jobs.

Additionally, the group is in advanced talks for another ₹1 lakh crore investment, which would include:

  • A greenfield smart city project
  • A major airport project
  • A coal gasification project

According to Gautam Adani, these investments will boost employment, improve connectivity, and position Madhya Pradesh as a key economic hub.

Stock Performance

Despite the major announcement, most Adani Group stocks were trading lower on Monday due to a broader market selloff:

Conclusion

Adani Group’s ₹1.1 lakh crore investment in Madhya Pradesh underscores its commitment to the state’s economic growth, with plans to create 1.2 lakh jobs by 2030. While the announcement highlights future expansion across multiple sectors, Adani stocks faced pressure due to a broader market downturn. Investors will closely monitor further developments and execution of these projects.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gillette India Share Price Surges 6% Despite Weak Market, Gains 17% in a Week

Gillette India share price saw a sharp rise of 6%, reaching ₹8,175.20 on the BSE in Monday’s trading session. At 10:14 AM, the stock was up 4% at ₹8,585, even as the BSE Sensex declined by 0.96%.

Over the past week, Gillette India has outperformed the market, gaining 17%, while the BSE Sensex dropped 1.8%.

Company’s Clarification on Stock Movement

Gillette India clarified that there is no undisclosed price-sensitive information impacting the stock’s movement. The company stated that, to its knowledge, no information needs to be disclosed to the exchange at this time.

About Gillette India

GIL is a well-known FMCG company in India, manufacturing and selling men’s grooming and oral hygiene products. Its popular brands include Gillette, Oral B, Venus, and Braun. The company offers a range of products such as shaving razors, blades, shaving foam, toiletries, and toothbrushes.

Stock Performance in 2025

So far in calendar year 2025, Gillette India’s shares have declined 12%, underperforming the market. In comparison, the BSE Sensex is down 5%, and the BSE FMCG index has fallen 9% during the same period.

Financial Performance (Q2FY25)

For the October-December 2024 quarter (Q2FY25), Gillette India reported:

  • Net profit: ₹125.97 crore (up 21.18%) from ₹103.95 crore in the previous year.
  • Revenue from operations: ₹685.55 crore (up from ₹639.46 crore) in the same period last year.

The company credited its strong performance to brand strength, innovation, and effective retail execution.

Conclusion

Gillette India’s stock surged despite broader market weakness, driven by strong financial performance and investor optimism. While the company clarified no undisclosed factors behind the rally, its brand strength and innovation continue to support growth. However, the stock remains down for 2025, underperforming the broader market. Investors will watch future earnings and market trends for further direction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Airtel Partners with Apple to Offer Apple TV+ and Apple Music to Customers

Bharti Airtel has teamed up with Apple to bring premium entertainment to its customers. As part of this partnership, Bharti Airtel will offer Apple TV+ and Apple Music to its Home Wi-Fi and postpaid users.

Who Gets Access?

  • Home Wi-Fi Customers: Those on plans starting at ₹999 per month can enjoy Apple TV+ along with access to multiple devices for streaming.
  • Postpaid Customers: Users on plans above ₹999 will get Apple TV+ along with six months of free Apple Music, which includes a vast collection of Indian and global music.

Enhanced Entertainment Experience

With this partnership, Airtel customers can access Apple TV+ shows and movies, such as popular titles like Ted Lasso, Severance, The Morning Show, Slow Horses, Silo, and more. The latest Apple TV+ films, such as Wolfs and The Gorge, will also be available.

Additionally, Apple Music will provide customers with:

  • A massive library of songs across multiple languages, including Hindi and English.
  • Expertly curated playlists and artist interviews.
  • Apple Music Radio, lossless audio, and immersive Spatial Audio.

Airtel’s Take on the Partnership

Siddharth Sharma, Chief Marketing Officer and CEO – Connected Homes at Airtel, said the partnership with Apple will offer a premium entertainment experience to millions of Airtel users. He emphasised that this move will set a new standard for digital content consumption in India.

Shalini Poddar, Director of Content and Services at Apple India, expressed excitement about making Apple’s award-winning content more accessible to Indian audiences.

Airtel Strengthens Its Entertainment Portfolio

With Apple TV+ and Apple Music joining Airtel’s existing partnerships with Netflix, Amazon Prime, ZEE5, and Jio Hotstar, customers now have a wide range of entertainment choices. This partnership solidifies Airtel’s position as a leading provider of premium digital content.

About Bharti Airtel

Airtel is one of the world’s largest telecom operators, with over 550 million customers across India and Africa. It provides high-speed 4G/5G mobile broadband, fibre internet with speeds up to 1 Gbps, digital entertainment, cloud services, cybersecurity solutions, and IoT services.

Bharti Airtel share price is trading at ₹1,609.40, down 1.82% as of 11:53 AM IST on February 24. The stock opened at ₹1,627.00, reached a high of ₹1,637.55, and a low of ₹1,605.35. 

Conclusion

Bharti Airtel’s partnership with Apple enhances its premium entertainment offerings, giving customers access to Apple TV+ and Apple Music. This move strengthens Airtel’s digital content portfolio, reinforcing its position as a top telecom and entertainment provider in India. Despite the announcement, Airtel’s stock traded lower amid broader market weakness.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RBI Tightens Unsecured Loans: What It Means for Healthcare Financing

The Reserve Bank of India (RBI) has tightened rules on unsecured loans due to increasing defaults. Fitch Ratings has warned about financial stress in personal loans and credit card debt. However, experts argue that healthcare loans need a different regulatory approach.

Concerns Over Rising Defaults

A recent Fitch report highlights growing risks in unsecured lending. RBI data shows that overdue microfinance loans (31 to 180 days past due) increased from 2.15% in March 2024 to 4.3% in September 2024. In response, the RBI raised risk weights on unsecured loans, making borrowing more expensive. These higher costs are passed on to consumers and businesses.

Healthcare Loans Are Different

Medical loans differ from regular personal loans. Unlike other loans, medical loan funds go directly to hospitals, reducing misuse.

Medical emergencies often require quick funding, making secured loans impractical. A balanced regulatory approach that ensures access to healthcare financing while managing risks in the unsecured loan market.

Balancing Regulation and Access

As lenders move toward secured loans, industry experts urge the RBI to consider the essential nature of healthcare loans. Striking a balance between managing credit risks and ensuring access to medical funding remains a key challenge.

Conclusion

While RBI’s stricter rules aim to manage credit risks, healthcare financing needs special consideration. A balanced approach is crucial to ensure timely access to medical loans.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

RBI Proposes Removal of Prepayment Penalties on Floating Rate Loans

The Reserve Bank of India (RBI) has proposed new guidelines to eliminate prepayment penalties and foreclosure charges on floating-rate loans. The draft guidelines, released on Friday, invite public feedback until March 21, 2025. Once finalised, the new rules will apply to loans closed after the specified date in the final circular.

Who Will Be Affected?

The proposal applies to:

  • Banks: All Scheduled Commercial Banks (except Payments Banks), Local Area Banks, and Co-operative Banks.
  • Financial Institutions: Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and All India Financial Institutions (AIFIs).

Key Changes Proposed

  • No prepayment charges for individuals with floating rate loans, except for business loans.
  • No charges for small businesses (MSEs) and individuals on floating rate business loans, except for Tier 1 and Tier 2 Urban Cooperative Banks (UCBs) and base layer NBFCs.
  • No penalties for early repayment of any floating rate loan, whether partial or full.
  • No minimum lock-in period for prepayment or foreclosure.
  • Regulated entities (REs) must disclose charges in the Key Fact Statement given to borrowers.
  • No retrospective penalties on previously undisclosed or waived prepayment charges.
  • No foreclosure charges if the lender initiates loan closure.

Why This Matters

These proposed rules will provide borrowers with more flexibility in repaying their loans without extra costs. By removing excessive penalties, the RBI aims to promote transparency and ease of business for borrowers managing floating rate loans.

Conclusion

The RBI’s proposal to remove prepayment penalties on floating-rate loans is a significant step toward borrower-friendly lending practices. By enhancing transparency and reducing costs, these changes will empower individuals and small businesses to manage their loans more efficiently.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Your EPF Deposits May Earn Fixed Returns – Key Updates on the New Proposal

The government is taking steps to modernise the services of the Employees’ Provident Fund Organisation (EPFO) to enhance user experience. Meanwhile, the EPFO’s Central Board of Trustees (CBT) will meet on February 28 to decide the interest rate on EPF deposits for the financial year 2024-25.

EPFO Interest Rate Decision

The CBT, led by the Union Minister for Labour and Employment, includes representatives from employee associations, trade unions, and government officials. The current interest rate on EPF deposits is 8.25% (for FY 2023-24), and reports suggest that this rate may remain unchanged for the next financial year. However, the CBT’s decision must be approved by the finance ministry before it becomes final.

EPFO Interest Rate Trends

  • FY 2023-24: 8.25% (highest in 3 years)
  • FY 2022-23: 8.15%
  • FY 2021-22: 8.10% (lowest since 1977-78)
  • 2010-11: 9.50% (highest in the last decade)
  • 2019-2021: 8.50% (stable for 2 years)

Government Considering Fixed Returns on EPF

The government is considering introducing a fixed interest rate on EPF deposits to ensure stable returns for millions of EPFO members. A proposal is being discussed to create an Interest Stabilisation Reserve Fund, which would help maintain consistent interest rates. However, this proposal is still in the early stages and is being studied for feasibility.

How Does the Government Invest EPF Deposits?

The EPFO invests in equity markets through Exchange Traded Funds (ETFs) linked to:

  • BSE SENSEX
  • NSE NIFTY-50
  • Bharat 22 ETF (Government disinvestment fund)
  • CPSE ETF (Central Public Sector Enterprises Index)

EPFO 3.0 – Major System Upgrade from June 1

The EPFO will launch EPFO 3.0 from June 1, 2025, bringing major improvements in service delivery for over 7 crore EPF members. According to Union Minister Mansukh Mandaviya, the upgrade will improve efficiency and make EPF services more seamless.

Possible Changes in Employee Contribution

One of the proposed changes under EPFO 3.0 is a review of the 12% cap on employee contribution. Employees may soon be allowed to contribute more than 12% of their basic salary to increase their retirement savings. However, employer contributions will remain fixed based on salary, ensuring no additional financial burden on employers.

Conclusion

These updates indicate significant changes in EPFO policies aimed at providing better returns and improved services for employees.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.