Our Bureau

New Delhi, Feb. 3

THE Power Minister, Mr P. M. Sayeed, today said that a solution to the Dabhol power project imbroglio was "in sight" and that "significant" progress has been made in resolving the dispute between stakeholders.

The Empowered Group of Ministers, headed by the Defence Minister, Mr Pranab Mukherjee, has held a series of meetings discussing different options to restart the 2,184-MW power project, which has been lying idle for over three years.

"We are still working on the issue... there should be a solution soon," Mr Sayeed said.

The move to revive the power plant, once billed as the single largest foreign direct investment in the country, had gathered steam after the foreign lenders and majority shareholders in Dabhol Power Company GE and Bechtel filed arbitration proceedings to the tune of $6 billion against the Government.

The Government had earlier proposed forming a special purpose vehicle with equal participation from public sector National Thermal Power Corporation, GAIL India and IDBI, though no decision has been taken so far.

(This article was published in the Business Line print edition dated February 4, 2005)
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