State-run gas firm GAIL (India) Ltd on Wednesday said it was talking to the Indian lenders of the Dabhol Power Company to takeover the 2,184 MW power plant and the adjoining LNG import facility in Maharashtra.

"We have formed a consortium with Tata Power and British Petroleum to put a joint bid for acquiring DPC assets," GAIL chairman and managing director Proshanto Banerjee told a news conference in New Delhi.

The GAIL-Tata-BP consoritum is talking to the Indian lenders to the $3 billion project. "Indications are that lenders are likely to go for asset sale rather than equity sale," he said.

The United States-based energy firm Enron had 65 per cent stake in DPC which shut operations after a bitter payment row with the sole buyer of its electricity, Mahrasthra State Electricity Board. GE and Betchel had 10 per cent a piece. MSEB has the remaining 15 per cent.

Banerjee said he was not aware when the lenders would call for bids for asset sale and as to by when the beleagured plant would start operation.