One observation related to that is that when the banking system is re-engineered and becomes safer and better capitalized, the cost of equity capital for banks should also fall. Investors in bank stock will be satisfied with a lower rate of return when the capital structure of banks is improved.
As per the plans, the SEB losses are being cut by power tariff revisions. Investment revival is possible Big steps for reforming power sector are now being taken and can pave the way for revival of investment. The debt restructuring of discoms is being done in an incentive-compatible manner and may not encourage moral hazard or regulatory forbearance.