Several electricity generation projects are currently up for sale and Indian conglomerates are buying them for less than 5 per cent of the debt owed to the banks by the previous promoters. Take, for example, the Vedanta group which has taken over the Athena Power project for just Rs 500 crore as compared to Rs 5,800 crore owed by the previous owners to the banks.

This way, several other power projects will be taken over by Indian conglomerates, like the KSK project by the Aditya Birla group’s stressed asset fund. The Adani group has already snapped up several power projects. With these asset sales, the banks will resolve stressed assets worth Rs 2 trillion.