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DPC row to be resolved by March: IDBI chief

Industrial Development Bank of India led financial institutions are hopeful of resolving the third party sale imbroglio of the beleaguered Enron's stake in the Dabhol Power Company by the end of this financial year.

"We are currently holding marathon discussions with a high level team of the US government owned Overseas Private Investment Corporation in order to solve the issue and till now talks have been on a right track," IDBI chairman and managing director P P Vora said in Mumbai on Thursday. When asked to comment on the date by which the Indian financial institutions would be able to ensure a smooth sale of the idle 2,184-mw power plant, Vora said "it will be done by end-March 2002".

He declined to spell out further details of the on-going lenders' meet saying, "matters are strictly confidential".

Meanwhile, FI sources say that Indian lenders are trying to work out a solution over their stalemate with the foreign equity holders of DPC and chart a final confidentiality agreement document for due-diligence of the project, to be carried out by the three bidders- Tata Power Company, BSES Ltd and Gas Authority of India Ltd.

Sources said top officials of IDBI and other FIs are also discussing the effect on DPC's sale process if OPIC approves the much sought after $200 million political risk cover to the erstwhile energy major.

IDBI and other Indian FIs have an exposure to the tune of Rs 62.04 billion in the $3 billion project.

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