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Is Power Generation Business in India Still a Low Hanging Fruit for Investors ?

News:

NTPC is under a lot of pressure to expand and deliver cheap power but faces a big challenge as its customers, the state owned power distribution companies, are not buying electricity due to their poor financial health, forcing the company to run plants at low capacity, NTPC chairman Arup Roy Choudhury told ET. 
 

Source: ET

SNP Insights:

Poor financial health of the discoms coupled with the high congestions faced in the power transmission network is badly hitting the generation companies with a sharp decline witnessed in the PLF.Now generation business is no more low hanging fruit for investors.Reguations for capacity addition were there but what about strengthening of transmission and distribution system.

Source: SNP Infra Research