News Detail

<p><strong><span style="font-size:14px"><span style="font-family:calibri">News:</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:14px"><span style="font-family:calibri">In view of the rising debt of power distribution companies, the Cabinet is likely to take up tomorrow the issue of tackling Rs 4.3 lakh crore loans of these discoms to bring down their liabilities.<br /> <span style="font-size:10px">Source: ET</span></span></span></p> <p style="text-align: justify;"><strong><span style="font-size:14px"><span style="font-family:calibri">SNP Insight:</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:14px"><span style="font-family:calibri">The debt recast plan for discom to improve there financial health is a good move by the government. Lower cost of debt with elongated tenure would help in improving the country&#39;s overall PLF and availability of power. However, if timely revision of tariff is not done then it is liklely to get into debt trap making the financial health more worse.<br /> <span style="font-size:10px">Source: SNP Infra Research</span></span></span></p>