News Detail

News:

The power equipment business of Larsen & Toubro, Thermax, Bharat Forge and others that invested several crores on building capability, continue to bleed as their customers — the power generators — are still holding back orders for new projects as they await visibility of power purchase agreements from state-run power distribution companies.

Source:- ET

SNP Insight:

Power OEM's are sitting on the horns of dilemma as they are unsure that huge investments made in building new manufacturing facilities would turn into NPA's in absence new power generation projects being floored by private generation companies which may push them for debt restructuring. Amidst all the uncertainty there rests a positive silver lining for the OEM's in the rake of capacity expansion by Government through UMPPs and new coal linkage policy which would witness enhanced private participation through new bidding mechanism, leading to potential business for them.

Source:- SNP Infra Research