The Hindu Business Line : GE reaches settlement on Dabhol disputes

GENERAL Electric (GE) on Thursday announced that it has reached a "comprehensive settlement" of its Dabhol-related disputes with the Centre, the Maharashtra Government and the Indian lenders to the Dabhol Power Company (DPC).

The settlement includes financial consideration in partial payment of various contractor claims for work completed but not paid and in exchange for the transfer of GE's ownership interest in Dabhol, GE said in a release here.

"This has been a long and complex process that GE believes has resulted in a fair and equitable resolution of all issues related to the DPC," GE India's President and CEO, Mr Scott Bayman, said in a release here. GE Energy is working closely with National Thermal Power Corporation and Bharat Heavy Electricals Ltd to restart and complete phase one of the power project and construction of phase two, he said.

"India is an important country to GE's global growth. We look forward to working with our partners, customers and State and Central Governments in helping India continue to develop into a leading world economy," Mr Bayman said. According to a Government official, the settlement with GE and Bechtel would give the Indian lenders the rights to restart the power project.

The Government is also in negotiations with Bechtel, which along with GE holds about 85 per cent in DPC — for a settlement of its claims separately, official sources said.

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