The Hindu Business Line : GE to partner NTPC, BHEL for Dabhol project revival

MR Scott Bayman, President and CEO, GE India, announced on Monday that GE Energy would join National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Ltd (BHEL) to determine a course of action for restarting and completing the Dabhol Power Project (DPC).

In a statement to the press, GE India said that as soon as arrangements are completed at the site, GE Energy would dispatch its engineers and technical advisors to examine GE-supplied turbines and related equipment. Based on these evaluations and the findings of NTPC and BHEL on the balance of the plant, a detailed work schedule for the restart of phase 1 and completion of phase 2 would be established.

"GE is pleased with the course of discussions with the various stakeholders in DPC and looks forward to a complete resolution of the outstanding issues," Mr Bayman said, adding that the company had always held that a fully producing plant was in the best interests of the people. "We are keen to put Dabhol behind us, assist with bringing power to the people of Maharashtra and pursue our growth initiatives across a wide range of business sectors in the country," he said in a statement.

GE's decision to partner with NTPC and BHEL follows the recent visit of GE Chairman and CEO, Mr Jeffrey R. Immelt, to the country during which he met the Prime Minister and Ministers for Power, Finance and Commerce.

The 2,184-megawatt Dabhol plant, one of the country's largest foreign investment projects, was shut down in June 2001 after a dispute over electricity tariffs between the then US-based promoter Enron Corporation and the Maharashtra State Electricity Board. GE and Bechtel Group Inc together own an 85 per cent stake in DPC.

Earlier this month, the domestic lenders, led by IDBI and SBI, were reported to be in the process of persuading the foreign lenders to the project to sell their debt component to them. A special purpose vehicle was also being set up by the Indian lenders for this purpose. NTPC, BHEL and GAIL (India) Ltd are to be closely looking at the project.

During his visit last week, GE's Mr Immelt made it clear that the company is keen on resolving the Dabhol issue. "We are very keen to put people on the ground very quickly, and we can reach a closure with the Government in the short term for GE. For us, it is not about money at all but about the future role in the project. The intention is to help re-start the plant, and we can play a major role in it," he had said in Mumbai.

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