Date:16/01/2005 URL: http://www.thehindubusinessline.com/2005/01/16/stories/2005011601630100.htm

Back Dabhol solution `in sight'

Our Bureau

Mumbai , Jan. 15

THE Union Power Minister, Mr P.M. Sayeed, has said the Government may be close to a solution for restarting the 2,187-MW Dabhol power project, lying closed since May 2001.

"A solution is in sight. It could come pretty soon... may be in a few weeks. NTPC and GAIL are assisting the Dabhol Power Corporation (DPC) lenders at this stage. One is not talking of ownership at this juncture," the minister told reporters.

Mr Sayeed refused to be drawn into specifics about the funds committed by the PSUs and the December 31, 2004 deadline set for NTPC, GAIL and IDBI to achieve financial closure. He also refused to comment on the arbitration initiated by the US Government-promoted Overseas Private Investment Corporation (OPIC) against the Government of India for breach of an investment incentive agreement and recovery of its claims worth $110 million.

The DPC plant and machinery was in good repair when inspected about a year ago and once the 741-MW first phase got restarted, the second phase would follow, he said.