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IDBI to begin due diligence in DPC by Jan-end

The Industrial Development Bank of India-led consortium of domestic lenders has set a target of starting the due diligence process for sale of Enron's stake in Dabhol Power Company by this month end.

IDBI is currently holding discussions with Overseas Private Investment Corporation on finalising details of the confidentiality agreement to be signed with the entities, who have evinced interest in the $3-billion project, IDBI chairman and managing director P P Vora told newspersons on the sidelines of a conference on 'Corporate Governance' in Mumbai on Friday.

Vora said a foreign company has now evinced interest in DPC, but declined to name it. So far BSES Ltd, Tata Power, Gas Authority of India have expressed interest in the project.

Vora said the bankruptcy suit filed by Enron in the US would not impact the sale proceedings as DPC was a separate entity.

Referring to the complaints about removal of certain equipment and assets from the plant, he said: "An investigation team of financial institutions has just returned from Dabhol and full details are awaited."

The lenders have also taken strong exception to the removal of 'chips' from operating equipment. "We have sought an explanation from DPC management about it," Vora said.

On Enron's current situation in the US, he said despite the best corporate governance practices there was massive failure in the company and its auditors had failed to disclose the vital information (off balance transactions).

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The Enron Saga

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