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FIs to take charge of DPC's assets: Geete

Union Power Minister Anant Geete said on Wednesday that the consortium of financial institutions led by Industrial Development Bank of India will soon take charge of the "assets" of the controversial Dabhol Power Project and asked Maharashtra to agree for hiking the tariff to buy power from the first phase of the idle project.

Geete, who took over the power portfolio following the resignation of Suresh Prabhu, said, "The IDBI-led FIs shall soon take charge of the assets and control them."

Geete said National Thermal Power Corporation has all the necessary technical expertise to operate the plant and has not expressed any reservations on taking this responsibility.

Stating that the $2.9 billion project has been lying idle for over a year now, he said the Maharashtra government and its electricity board Maharashtra State Electricity Board should agree for a hike in their proposed tariff of Rs 2.25 per unit.

"Dabhol power project, in which over Rs 9000 crore (Rs 90 billion) have been invested, is lying idle for more than 18 months. We are discussing the matter with the state government and hope to see some solution in the next two months," he said.

"The early recommissioning of the plant will help to turn the idle asset into an income generating one," Geete said adding this would enable Enron-controlled Dabhol Power Company to pay its dues to the FIs.

The 740-MW Phase-I was shut last year and construction on 1,444-MW Phase-II stopped following dispute between DPC and its sole customer MSEB over cost of power.

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