GE and Bechtel have put forward a three-pronged strategy to the Indian lenders, led by the Industrial Development Bank of India, to restart Phase I and complete Phase II of the $3 billion Dabhol project.
Foreign lenders to Enron Corp's $2.9 billion stalled Dahbol power project said on Thursday they had launched arbitration proceedings in a London court to recover their loans and exit from the Indian project.
Talks have begun between Indian and foreign lenders of the Dabhol Power Company in Singapore to buy out the latter's debt exposure of over $310 million in the beleaguered company.
Foreign and Indian lenders of the troubled Dabhol Power Company would meet in Singapore on Monday to find a solution to the vexed issue even as majority stakeholders in DPC, GE and Bechtel have offered to sell their equity for close to $400 million.
In a significant development, GE and Bechtel, minority share holders in Enron-promoted Dabhol Power Company, have agreed to extend unconditional support for restarting generation of power from the project, lying idle for over 20 months.\n\n\n\n
The government is likely to approve shortly a counter-guarantee of about Rs 950 crore (Rs 9.5 billion) to enable domestic lenders of Dabhol Power Company to buy out debts of foreign lenders
Shiv Sena, which once opposed the controversial Dabhol Power Company, said on Thursday that it was not averse to buying power from the company to tide over the acute power shortage that is being faced by the state.
The Arbitral Tribunal at London has adjourned the proceedings on the case filed by the Dabhol Power Corporation, pertaining to the invocation of counter guarantee given by the Union government, official sources said in New Delhi on Monday.
The Maharashtra government has decided to allow MSEB to draw power from phase I of Dabhol Power Company at an optimum level of 83 per cent and tariff of about Rs 2.80 per KWH.
Industrial Developemnt Bank of India, the principal lender to the Dabhol Power Company, has finally declared the 2,184 mw power project as a non-performing asset.
Meanwhile, the US Bankruptcy Court late on Thursday has rejected Reliance Energy Ltd's bid to buy out the bankrupt Enron Corp's 65 per cent stake in the controversial Dabhol Power Company.\n\n\n\n