Date:28/05/2005 URL: http://www.thehindubusinessline.com/2005/05/28/stories/2005052802190200.htm

Back GE to have long-term approach to solve Dabhol issue

Our Bureau

"Dabhol was not a success for us either, financially not at all. But we are a long-term company and that's the way we look at it".

Mr Jeffrey Immelt, Chairman & CEO, GE, addressing a press conference in Mumbai on Friday. — Paul Noronha

Mumbai , May 27

GE's approach to resolving the Dabhol tangle would be influenced by the company's desire to have a long-term presence in India.

According to its Chairman and CEO, Mr Jeffrey R. Immelt, it is GE's intent to work with the Central Government and resolve the problems surrounding the 2184-MW power project.

It would want to protect its investors in the short run, but its attitude would also be directed by the need to position GE here for the long term.

"We will do it even without financial resolution. Every part of our thinking on Dabhol is related to GE here in the long term," he said.

The project agreement is a complicated one but Mr Immelt felt the parties should be able to reach closure in a brief period.

"It is not about how much money," he said when asked what was delaying a solution. Risks have to be taken for business to succeed in the long run.

"Dabhol was not a success for us either, financially not at all. But we are a long-term company and that's the way we look at it," Mr Immelt said.

GE and Bechtel Inc together hold 85 per cent stake in Dabhol Power Company (DPC).

On growing its financial business in the country amidst regulations not yet conducive to acquiring the existing Indian banks, he said, "we have always viewed organic growth as the foundation of the company. Acquisition is something we do as it becomes available. Every move we make will be mindful of regulations".

Mr Scott R. Bayman, President & CEO, GE India, said that GE Money planned to significantly increase its branch network.

Overall, GE's Indian revenues from various interests should be $ 3 billion-5 billion by 2010. It is approximately $800 million at present.

Asked about GE's new investments in India, Mr Immelt said, the country was poised to be one of the fastest growing economies and it had the necessary pre-requisites to merit more investment like strong legal system, financial system and respect for IPR.

"As much as it takes," he quipped to quantify likely fresh investments by GE.

Besides financial services and its intent to participate financially in infrastructure projects, GE sees opportunity for its water business (desalination, filtration and related chemistry) in India.

Also viewed optimistically are opportunities from the country's growing aviation sector.