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Railways to Buy Stressed Power Asset may Impact State DISCOM

News:

Indian Railways is exploring options to buy distressed power projects as the nation’s largest consumer of electricity seeks to cut energy costs.
Source: Live Mint

SNP Insight:

Strategy to buy stressed asset is a thoughtful move by the government to improve the balance sheet by gaining INR 2 per unit of electricity. This will also help the bank in reducing there non-performing asset. But, it may act against the state discom as there is chances of losing cross subsidized consumer.
Source: SNP Infra Research