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IDBI looking for buyers for Dabhol project

The Industrial Development Bank of India, one of the principal lenders to the Dabhol Power Company, has started looking for new sponsors for the Enron-promoted controversial project.

"IDBI has initiated the selection process for identifying new sponsors to replace the present ones, who have desired to exit from the project, so that the project can be completed and operations restarted," Minister of State for Power Jayawanti Mehta informed the Rajya Sabha on Wednesday.

The high court in Mumbai has already appointed a receiver for all the properties of DPC, she stated.

She said the Centre has agreed to facilitate the revival of the project. However, the primary responsibility for finding an amicable solution lies with the two parties to the power purchase agreement - the Maharashtra State Electricity Board and the DPC.

Foreign investors withdrawing: Mehta said that many of the foreign investors, who have withdrawn from the Indian power sector, have cited the inability of the state electricity boards to provide adequate payment security cover to the private sector projects as one of the main reasons for their disappointment.

Foreign investors who have withdrawn so far include Cogentrix Energy Inc, Electricite de France, Bayerwerk View, Ogden Energy, Daewoo Power and Mirant Asia Pacific Ltd.

UNI

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