Reliance Power on Monday said it has signed an agreement to sell its entire stake in five Indonesian coal entities for a total consideration of $12 million.

In a regulatory filing, the company said that its subsidiaries: Reliance Power Netherlands B.V. and Reliance Natural Resources (Singapore) Pte. Ltd, have entered into a share purchase agreement with Biotruster (Singapore) Pte. Ltd. for the sale of 100% equity in PT Avaneesh Coal Resources, PT Heramba Coal Resources, PT Sumukha Coal Services, PT Brayan Bintang Tiga Energi, and PT Sriwijaya Bintang Tiga Energi.

The agreement was executed on September 29, 2025, and the transaction is expected to be completed by December 30, 2025, subject to customary conditions. Reliance Power will receive the full consideration of $12 million upon closing, it said.

The Indonesian subsidiaries contributed no income in the last financial year and accounted for 0.53% of Reliance Power’s consolidated net worth, valued at ₹16,909 lakh.

Reliance Power clarified that the buyer, Biotruster (Singapore) Pte. Ltd., does not belong to its promoter group and the deal does not fall under related party transactions.

The sale does not involve a slump sale or any scheme of arrangement under Regulation 37A of SEBI’s Listing Obligations and Disclosure Requirements (LODR), the company added.

reliance powerReliance Power divest Indonesian coal subsidiariesReliance Power subsidiaries sale agreementBiotruster Singapore PT Ltd acquisitionPT Avaneesh Coal Resources salePT Heramba Coal Resources divestmentReliance PowerBiotruster (Singapore) Pte. Ltd.SEBIsumukha coal services

With inflation eroding fixed deposit returns, Indian savers are exploring alternatives like government bonds, corporate bonds, and NBFC FDs. A diversified portfolio, balancing risk and return, can significantly outperform traditional FDs. Digital platforms now offer easy access to these fixed-income instruments, empowering investors to achieve better growth without sacrificing safety.

For decades, fixed deposits (FDs) were the go-to choice for Indian savers seeking safety and certainty. Rolling over FDs at maturity was a routine decision, driven by the belief that these instruments provided reliable returns. However, in today’s financial landscape, this approach is being challenged.

As of September 2025, top bank FDs offer yields in the range of 6.25%–7.1%. With inflation hovering around 5.3%–6%, the real returns from FDs have eroded significantly. Savers now face the uncomfortable reality that their money isn’t growing fast enough to keep pace with rising living costs.

This evolving scenario makes it imperative to explore wiser, short- to medium-term alternatives that deliver stability, higher returns, and flexibility. Among these, bonds, especially investment-grade corporate bonds, stand out as a compelling solution.

Benchmark Indian government bonds fell on Monday following an increase in the share of their issuance in New Delhi's fiscal second half borrowing plan, with traders also turning cautious ahead of Wednesday's central bank policy decision.

For earlier generations, FDs represented reliability, and their returns were inflation-proof. In fact, until just a decade ago, FDs were a safe and smart investment option. Today’s reality, however, tells a different story.

Stagnant rates: Most bank FDs for general customers offer 6.25%–7.1% depending on tenure and institution (as of September 2025).

Inflation drag: With inflation in the 5.3%–6.0% range over the last year, the real return barely moves the needle.

The combination of lower yields and high inflation reduces the capital-preserving ability of FDs. Once seen as the foundation of financial security, they now risk becoming a slow leak in long-term investments.

This raises the pressing question of whether FDs are still viable for our future, or is it time to explore the best alternative investments to FDs?

The expanding world of FD alternatives

The good news for Indian investors today is that they have access to a wide range of fixed-income products that strike a balance between safety and superior returns. These instruments are tightly regulated, non-volatile, offer fixed returns, carry relatively lower risk, and are designed to deliver better-than-FD outcomes.

Government and PSU bonds: Low risk, modest growth

At the lower end of the risk spectrum, government securities, such as G-Secs, State Development Loans (SDLs), and Public Sector Undertaking (PSU) bonds, remain highly attractive.

With sovereign backing, G-Secs offer stable returns of around 7%–7.5% and virtually zero default risk. SDLs and PSU bonds, issued by government-backed corporations, deliver slightly higher yields, generally in the 7.25%–8% range.

These bonds are ideal for conservative investors seeking to preserve capital over a one-to-five-year horizon while earning a predictable income. Available through RBI (Reserve Bank of India) Retail Direct and SEBI-registered OBPP (online bond platform provider) platforms, such as Jiraaf, these bonds are ideal for emergency fund investments and goal-based investing, where preserving the corpus is of utmost importance.

Corporate bonds: Higher yields with structured stability

Corporate bonds occupy the sweet spot in the short- to medium-term investment spectrum. Unlike FDs, which offer flat and uniform returns, corporate bonds deliver a range of yields, between 8% and 15% in 2025, depending on the issuer’s credit rating and tenure.

Corporate bonds rated between AAA and BBB are classified as investment-grade corporate bonds. The AAA and AA-rated bonds are considered the least risky class of corporate bonds; therefore, they offer lower yields ranging between 8% and 9%. These bonds make the perfect safety net addition to an investor’s portfolio. Meanwhile, bonds rated A and BBB, while carrying marginally higher risk, offer yields upwards of 10%–14%, compensating investors for the added credit risk. These bonds make excellent growth assets and should therefore be added to the portfolio.

The key advantage of fixed-income investments is the ability to build a laddered portfolio: by diversifying across ratings, tenures, and yields, investors can create a structure that balances regular income with capital growth, all while managing risk prudently. This makes corporate bonds well-suited for young investors starting their wealth-building journey, mid-career professionals seeking stable returns, and retirees looking for predictable income.

Regulated by SEBI and increasingly accessible via digital platforms such as Jiraaf, corporate bonds today are far easier to invest in than ever before, combining transparency with convenience.

High-yield NBFC FDs: Attractive but insured

For those who prefer the familiarity of FDs but seek higher returns, high-yield NBFC (non-banking financial company) FDs are an emerging option. Offering rates significantly higher than traditional bank FDs—often in the range of 8%–10%—these instruments cater to investors willing to explore private-sector options.

Importantly, NBFC FDs are insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, providing an additional layer of safety. They are suitable for investors seeking short-term placements of one to three years, offering marginally higher yields with a modest level of risk.

Bond-plus FD vs traditional FD portfolio: ₹10 lakh eturn comparison

A well-crafted mix of government bonds, corporate papers, and high-yield NBFC FDs can supercharge your short- to medium-term portfolio. Here’s how ₹10 lakh invested strategically earns nearly 52% more than a traditional FD without compromising on safety.

Altogether, this diversified approach yields around ₹98,750 per year, a nearly 52% higher return than a traditional FD, while still keeping risk well-managed. For investors seeking more from their short- to medium-term savings, this balanced strategy is a more innovative way to grow wealth safely.

The road ahead: Balanced, smarter investing

Fixed deposits continue to serve as a safety anchor in many portfolios. However, relying solely on FDs risks stagnation in today’s rising-cost environment. A well-structured mix of government and PSU bonds, corporate bonds, NBFC FDs, and short-term instruments, such as T-Bills (Treasury Bills), offers a pragmatic path to wealth growth.

The short- to medium-term nature of these bond investments makes them highly suitable for building a diversified and stable portfolio, tailored to various life stages and financial goals.

With the rise of digital investment platforms such as Jiraaf, accessing and managing these instruments has never been easier. Indian savers today have the opportunity to move beyond tradition and adopt a more innovative, flexible fixed-income strategy, without compromising safety or stability.