19. The recently approved Bank policy for the energy sector allows support for such financially nonviable rural electrification schemes, provided the power utility can absorb them ‘without adversely affecting its overall financial viability’. To assess the impact of the Project on PEA, financial projections have been prepared for with the Project and without the Project scenarios. The comparative figures for net income, ROR on revalued assets, debt service coverage ratio, self financing ratio, and debt/equity ratio show only minor differences (Table 3). This confirms that the Project is marginal relative to PEA's overall operations and can be absorbed by PEA without significantly impairing its financial position.