Govt rejects GE rider on restarting DPC

The proposed restarting of the Dabhol power project has received yet another setback with the promoter General Electric (which holds 10 per cent stake) setting a pre-condition of getting its dues cleared before the start of the project.

The Centre, however, has rejected the proposal saying that two issues -- restarting the DPC Phase-I and clearing the old claims -- should not be linked.

"Lately, GE (India) has raised the issue of payment of their equity and their old claims on DPC, but we have told them restarting the plant should be delinked from these issues," R V Shahi, power secretary, said.

In the previous two-three rounds of discussion on restarting the Phase-I, which has been lying idle for more than 15

months, both the promoters GE and Bechtel had confirmed that they would provide required technical support and assist National Thermal Power Corporation to run the plant, Shahi said.

NTPC has already finalised the terms and conditions on behalf of IDBI-led financial institutions including the fee to be paid to the two equity partners GE and Bechtel, Shahi said.

"GE and Bechtel had said that such an arrangement was feasible and they would provide all the assistance," he added.

Asked whether Centre had communicated its decision to GE (India), Shahi said: "Yes and we are hoping to get their response in a day or so."