Fidelity, Aberdeen drawn to gas retailers as India cleans up

India's gas demand is about a fifth of China's due to weak domestic supply and poor infrastructure

Fidelity Investments and Morgan Stanley Investment Management have increased exposure to Indian city-gas retailers, as Prime Minister Narendra Modi's emphasis on clean fuels burnishes the outlook for the industry.

The demand from investors has been so strong that Indraprastha Gas, which supplies to homes and vehicles in New Delhi, raised the cap on foreign ownership to 30 per cent from 24 per cent, and may increase it again to almost half, Managing Director E S Ranganathan said. The largest citygas distributor Gujarat Gas, where Aberdeen Asset Management Plc is the biggest non-state investor, and Mahanagar Gas have also seen an increase