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November 7, 2016

Would like states to raise power prices gradually: Goyal

State-run electricity distributors are running out of cash and struggling to repay loans, squeezing banks’ ability to spur credit growth and undermining Prime Minister Narendra Modi’s campaign to attract more energy-hungry manufacturers to build new factories.

The central government would like states to raise power prices gradually, but they must decide by themselves, Power Minister Piyush Goyal told reporters on Wednesday. 

State-run electricity distributors are running out of cash and struggling to repay loans, squeezing banks’ ability to spur credit growth and undermining Prime Minister Narendra Modi’s campaign to attract more energy-hungry manufacturers to build new factories.

 Modi is to tell states to raise electricity prices in return for access to a financial bailout package, a politically contentious move that risks a backlash from farmers and consumers long used to free or cheap power.

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