As a first step towards restarting the beleaguered Dabhol power project, a 30-member team from GAIL (India) Ltd and National Thermal Power Corporation (NTPC) has begun assessing the plant.
Simultaneously, a team comprising government officials and executives from GAIL and NTPC will be leaving for the US to negotiate the terms for buying out foreign stakeholders and lenders, including General Electrics (GE), Bechtel and Opic. The Indian team is scheduled to meet Dabhol stakeholders in New York over the weekend.
The government has also worked out the legal framework for taking over the assets. GAIL and NTPC representatives met IDBI Chairman M Damodaran last week to work out ways of restarting the project.
The government has nominated NTPC as the agency for running the power plant, while GAIL will be taking charge of the liquefied natural gas terminal at the facility.
As per a proposal discussed by the empowered group of ministers under Defence Minister Pranab Mukherjee, the two public sector companies are to invest Rs 500 crore (Rs 5 billion) each for the restart of the plant.
Lenders, led by IDBI, will also be putting in another Rs 500 crore in the consortium. NTPC is, however, not too keen on chipping in with resources but is willing to be an operator on contract basis.
The consortium will be looking after the completion of the terminal and the power plants that are about 85 per cent complete.
The Dabhol Power Company is an integrated power plant with a regasification terminal. Phase I of the power plant, fuelled by naphtha, was completed in 1999 and was in operation until May 2001. It was shut down after the company ran into commercial and legal problems.
The promoting company, Enron, was also shut down subsequently, which led to GE stepping in.
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