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NTPC, GAIL and PFC can buy out Enron's equity in DPC: Bankers

The change of ownership in Dabhol Power Company can only be economically viable if major Indian power firms National Thermal Power Corporation, Gas Authority of India Ltd and Power Finance Corporation comes together to buy out the 69 per cent equity held by Enron in DPC, according to leading bankers.

The bankers who are party to the ongoing process of negotiations said on condition of anonymity that if the cash rich NTPC and GAIL with the help of PFC comes together to enhance their power availability, the ongoing dispute between the Maharashtra State Electricity Board and US power utility could be solved easily.

According to them the high cost of DPC power can be neutralised to some extent by these companies who had a vast network of sourcing cheap power from elsewhere.

Informed sources said that government as well as MSEB are not in favour of buying out the Enron's equity stake while NTPC and GAIL are reportedly in discussions with financial institutions and the government to find out a viable takeover of the DPC ownership.

When contacted for a reaction, the MSEB chairman Vinay Bansal said that it would be a welcome move and certainly benefit to solve the crisis.

It may be recalled that the MSEB has stopped buying power from DPC since May 2001. As a result DPC also had shut down its power plant subsequently. Efforts are on by the Centre, the Maharashtra government and MSEB to solve the issue.

The IDBI led consortium of Indian lenders are also engaged in discussion along with the international lenders to take stock of the situation and find some solution to it.

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