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Emission Norms may Increase the Cost of Power Funding

News:

A draft notification issued by the Ministry of Environment and Forest (MoEF) in mid-May asking all thermal coal power plants to drastically reduce their emissions has put power companies in a spot.
Source: Business Line

SNP Insights:

Emission norms may put the pressure on the Indian banks for the issue of more funds in the power sector which is already on the crunch of bad debt. This may increases the interest rate and is likely to invite foreign investors to invest in this segment to benefit over the cost of debt.
Source: SNP Infra Research