• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, Feb. 6

GE and Bechtel, equity-holders in the Enron-promoted Dabhol power project, today agreed to unconditionally offer support to restart the project, according to Power Minister, Mr Anant Geete.

On its part, the Government has agreed to actively consider the partners' recent petitions to the Centre aimed at recovering their investments in the project - $100 million equity and $60 million towards unpaid construction expense.

The two promoters have supplied the power generation equipment for the project and literally hold the key to starting the plant, which has been lying idle for over 20 months.

Since the beginning of the year the two promoters, in their communications to the Centre, have mildly linked their assistance in restarting the plant to the fate of their exposure in the project. They have said that while they were willing to restart the plant, the issue of their exposure in the project should also be addressed.

Speaking to newspersons here after a meeting with the heads of the two minority partners, Mr Geete said that GE and Bechtel have committed to restart the plant. "We have told them that we will consider their proposals in regard to recovery of investments. Further, we expressed our concern about the fate of their investments in the project since we do not want the wrong message to go out in regard to foreign investments in the country," he added.

According to Power Secretary, Mr R.V. Shahi, the equipment suppliers will begin talks with National Thermal Power Corporation (NTPC) on Friday to discuss the operational details involved in restarting the plant.

After the meeting with the Power Minister, the GE India chief, Mr Scott Bayman, refused to comment on the issue.

Although the Minister's comments seem to revive the hopes of the two minority promoters on the fate of their investments, officials who attended the meeting feel that it is not the Power Ministry's case to deal with the financials of the project and further that it had consciously stayed away from brokering any financial restructuring package.

"We have a limited objective of restarting the power project. The Finance Ministry and the financial institutions alone can broker any fdeal on the project. After all, they are the key stakeholders and hence they alone can decide the sacrifices to be undertaken in order to reach a package aimed at valuing equity in the project in the present context," a senior official said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Toy exports seen to touch $35 m

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line