Package likely for DPC in 3 weeks

By Our Special Correspondent

NEW DELHI, OCT. 4. A financial package to salvage Enron's $2.9b Dabhol Power Company (DPC) is likely to be finalised in three weeks by a consortium led by the Industrial Development Bank of India (IDBI).

Various alternatives were discussed and examined in detail for finalising the package, the IDBI chairman, Mr. P.P. Vora, told presspersons after a two-hour meeting with Finance Secretary, Mr. Ajit Kumar, today. Lenders were considering at least three alternatives including rescheduling of loans and reduction in interest rates, he said.

The lenders, including the IDBI, the ICICI, the SBI and the IFCI who have a total exposure of Rs. 6,204 crores in the project, were exploring possibilities of reducing the interest rate by 1.5 per cent as part of the debt restructuring plan of the 1,444 MW phase-II of the project.

Asked about the private bidders for the project, Mr. Vora said these would be known after three weeks. So far, only the Tata group has evinced interest in buying Enron's 65 per cent stake in the DPC. The other stakeholders are the Maharashtra State Electricity Board (15 per cent), General Electric and Bechtel each with 10 per cent.

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Section  : National
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