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Shrinking Domestic Power Equipment Market: Is it a Time to Invest in African Countries ?

News: 

Blue-chip firms in the power equipment sector, which were expected to get orders after the auction of coal mines and faster clearances, continue to bleed as power producers are still holding back new projects as they await power purchase agreements from state-run power distribution companies.
Source: ET

SNP Insights:

Poor capacity utilization (20-25%) of power equipment industry is likely to increase the gross NPA (Non Performing Assets) of the Indian banks which is already on the verge of converting INR 75000 crore into bad debt under power sector financing. The power equipment companies may recover its fixed cost by exporting the equipment to Southeast Asian and African countries at break-even price to compete with the chinese equipment manufacturer.
Source: SNP Infra Research

Note: SNP Infra Research is coming up with a dossier on " BTG Market in India - 2015 (Vol I -Supercritical and Vol II-Subcritical)". For more information click here