Desperate attempts to prevent liquidation of power sector assets in companies that are defaulters point to a deeper crisis afflicting neoliberal growth. A sector that was plagued by shortages was opened up to private participation, leading to rapid expansion in the expectation of large profits from liberalised prices. Public sector banks were called upon to finance that expansion with the government being complicit. Now, however, firms find themselves trapped between inadequate demand at prevailing prices and rising costs that precipitate default.
    
* This article was originally published in the Economic and Political Weekly: September 15, 2018.