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BSES to watch lenders decision; No comments: DPC

Our Bureau

MUMBAI, Nov. 29

BSES Ltd, one of the parties that has shown interest in picking up Enrons 65 per cent stake in Dabhol Power Company, today said it would wait for the lenders strategy now to proceed ahead.

Enron is expected to file for bankruptcy after Dynegy Corporation decided to pull out of the deal to purchase the energy major. Dabhol Power Company, Enrons troubled Indian subsidiary, declined comment on how the development would affect the sale of DPC.

We will wait and watch the strategy of financial institutions (on DPC sale), said Mr R.V. Shahi, Chairman and Managing Director, BSES Ltd, when contacted. We have not altered our stand. We are still interested in buying Enrons stake and are waiting for d ue diligence to begin. But this will happen only after we know how it affects Enrons decision to divest their stake in DPC, he said.

The company was to sign a confidentiality agreement with Enron for beginning due diligence of the 2,184-MW power plant, within two-three weeks. This is expected to be stalled.

Foreign lenders to the project are to meet in London on November 30, to decide the fate of the project.