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DPC asset sale decision on Wednesday

The two-day meeting of Indian and foreign lenders of the Dabhol Power Company has spilled over into a third day. A decision is now expected to be taken on Wednesday to either conduct sale of the idle 2,814-mw project's assets or go ahead with 85 per cent equity buyout.

"The meeting has spilled over as the foreign lenders have sought time till tomorrow (Wednesday) as they had to get approvals from their respective headquarters for arriving at a solution," Industrial Development Bank of India executive director A K Doda told reporters in Mumbai on Tuesday.

The IDBI official also made it clear that as a lender, the financial institution was not in a position to take over the plant or even the assets.

"The assets have to be taken over by a separate court receiver at our behest. If we decide for fresh bids, we shall have to request the Bombay high court to call for new round of bidding," he clarified.

The lenders are also actively considering a proposal to sell the five million tonne liquified natural gas facility separately.

"We have spoken to all the seven prospective bidders on an individual basis and taken their views on the point. They are also a worried lot, but IDBI has assured them that though delayed the process is on track," Doda said.

A steering committee of DPC lenders comprising of officials of IDBI, ICICI Ltd, State Bank of India, US-based Overseas Private Investment Corporation, Bank of America, ABN Amro and Citibank, is meeting in Mumbai since Monday to chalk out a final plan for bankrupt company's sale.

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