Indian lenders to the Dabhol power project would hold talks with foreign lenders over two days starting Thursday in Mumbai to buy out the latter's debt exposure in the troubled project.
The Industrial Development Bank of India-led consortium may get the government's backing for taking over the outstanding dues of foreign lenders, as part of efforts to restart the troubled Dabhol Power project at the earliest.
Restarting Dabhol Power could face fresh hurdles with its two stakeholders, Bechtel and GE, demanding full recovery of their investment in the project, lying idle for more than 24 months now.
IDBI-led lenders will meet Naresh Chandra panel soon to discuss future course of action on the 2,184 MW Dabhol Power project, before proceeding for a final negotiation with overseas lenders on May 12 in London.
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.
Power Minister Anant Geete said on Tuesday that the finance ministry is considering a proposal to restart the Dabhol Power plant, now lying idle for nearly two years.
The ministry of finance has estimated that about Rs 1,800 crore (Rs 18 billion) would be needed to restart the Dabhol Power plant, lying idle for the past three years.
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.
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.
Nationalist Congress Party president Sharad Pawar and Lok Sabha Speaker Manohar Joshi are among the 54 witnesses who would depose before the Kurdukar commission that is probing the legality of the multi-crore Dabhol
Tata Power Company has tied up with British oil major BP for a "joint evaluation" of Dabhol power project that has been lying idle and deteriorating for several months.
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
In an attempt to restart the controversial Enron promoted Dabhol power project, the power ministry is holding high-level talks with minority partners, GE and Bechtel.
The government is expected to hold negotiations with the promoters of Dabhol Power Corporation -- GE and Bechtel -- next week for restarting generation at the power project.
The unconditional apology was tendered over the filing of an irregular affidavit opposing the panel's jurisdiction.
A solution to the troubled Dabhol Power project appears to be in sight with IDBI-led financial institutions eager to thrash out their disputes with offshore lenders at the forthcoming meet on May 12 in London.\n\n\n\n
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
State-run gas firm Gas Authority of India Ltd has joined hands with Tata Power Co Ltd and British Petroleum to bid as a group for bankrupt US energy firm Enron Corp's Dabhol power plant and LNG import terminal in Maharashtra.
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.
Domestic lenders to Enron Corp's $2.9 billion Dabhol power plant are considering applying to a local court for a stay on arbitration proceedings begun by foreign lenders, who want to exit the stalled project, said an official with a domestic lender.
The revised draft of the Electricity Bill will be brought before Cabinet for approval soon, Power Secretary R V Shahi said in New Delhi on the sidelines of a seminar on power conservation.\n\n\n\n
Govt awaits GE, Bechtel response on 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.\n\n\n\n
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances