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Maharashtra govt wants FIs to take over DPC

The Maharashtra government has proposed the takeover of the 2,184 MW Dabhol Power Company by the financial institutions.

The suggestion came at a recent meeting convened by the finance minister and attended by the representatives of the power ministry, Maharashtra State Electricity Board and financial institutions.

The state government, which had been insisting that NTPC (National Thermal Power Corporation) should buy out DPC, is understood to have said that despite the efforts of the FIs, DPC might not agree to an amicable settlement of the issue.

Documents incriminating DPC have been obtained and it is reported that nearly 74 crates of documents have been unauthorisedly removed from the premises of DPC, sources said, adding that documents were also reported to have been destroyed.

The power ministry had earlier ruled out NTPC taking over the controversial project categorically saying it would be tantamount to backdoor nationalisation of a private sector project.

In this backdrop, participants felt that the solution offered by MSEB in the present circumstances seemed rational.

Meanwhile, the IDBI-led consortium of domestic lenders has set a target of starting the due diligence for the sale of Enron's stake in DPC by month-end.

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