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DPC sale delayed; lenders to appoint new advisors

In a move which could further delay the vexed issue of the distressed Dabhol Power Company, the lenders on Wednesday decided to appoint yet another set of advisors for either an asset or equity sale of the idle and incomplete 2,814-mw power plant.

"After more than two days of deliberations, both Indian and foreign lenders have unanimously decided to appoint financial and technical advisors to give us options for asset or equity sale of the DPC," Industrial Development Bank of India executive director A K Doda told reporters in Mumbai.

He said the advisors would be appointed shortly and will also counsel a small group comprising of representative of the six institutions on a road map for financial restructuring of the project and for induction of a new sponsor for DPC.

"The same advisors could also be mandated for managing the entire bid process," Doda said adding that the lenders had not set any time frame for submission of a report from the advisors.

The group consists of members from IDBI, ICICI and State Bank of India, from the Indian side, who have a collective exposure of over Rs 62 billion in the project, while foreign representatives are from the Overseas Private Investment Corporation, Bank of America and Citibank.

Doda said the lenders had also taken into confidence the prospective seven bidders who were invited for discussion on an individual basis with their views being recorded for further decisions.

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