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NTPC rejects Maharashtra government's proposal; not to bid for DPC

National Thermal Power Corporation on Tuesday rejected Maharashtra government's proposal to bid for Dabhol Power Project saying a take-over would "seriously burden" its resources.

"The taking-over of DPC by NTPC will seriously burden the resources of NTPC and adversely affect the credit rating of NTPC which in turn will jeopardise the capacity addition programme of NTPC," the state-owned power utility said.

NTPC said the proposal was properly considered taking into account its capacity addition programme, debt servicing requirements and the issues involved in DPC.

"On the overall consideration, it is found that the taking over of DPC will not be in the commercial interest of the organisation," NTPC said in a statement in New Delhi.

"In view of the above, NTPC has decided not to submit its expression of interest and not take part in the subsequent due diligence and bidding exercise," it added.

NTC said the viability of the Dabhol project rested entirely on the restructuring of the project to be made by the existing stakeholders -- MSEB, Enron and financial institutions with co-operation of fuel suppliers.

It, however, stated its willingness to extend technical consultancy in completing the Phase-II of DPC as well as in operation and maintenance of Phase-I and II, as technical consultant on payment of fees and on hands-off basis.

NTPC was earlier advised by the power ministry to take part in the due diligence and bidding exercise for DPC.

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