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Acquisition of Distressed Generation Asset: Is it a Right Move ?

News

The Kolkata-headquartered power utility has told investors that it sees "acquisition of generation assets and fuel security for new projects" as its "growth opportunities".
Source: DNA

SNP Insights

Acquisition of distressed generation asset is likely to be a good move by the CESC as it would  increase the valuation of the company provided company is able to secure the fuel supply agreement and if there exist in line PPA signed consumer. Else it would turn in to burden due to falling demand of power.

Source: SNP Infra Research