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FIs hopeful of resolving DPC issue in 3 weeks

A financial package to salvage Enron's $2.9 billion Dabhol Power Company is likely to be finalised in three weeks by the IDBI-led consortium.

"We discussed various alternatives and all of them are being examined in details to proceed further and come out of the imbroglio within three weeks," IDBI chairman P P Vora told reporters after a two-hour long meeting with finance secretary Ajit Kumar in New Delhi on Thursday.

Vora said the lenders were considering at least three alternatives including rescheduling of loans and reduction in interest rates.

IDBI, ICICI, SBI, IFCI and other lenders, who have a total exposure of Rs 62.04 billion in the project, were exploring possibilities of reducing the interest rate by 1.5 per cent to 15 per cent, as part of the debt restructuring plan of the 1,444 MW Phase-II of the project promoted by US energy major Enron.

The finalisation of the package is vital for the lenders as well as the private players who are bidding for Enron's stake in DPC.

Asked about the private bidders, Vora said, "that will be known after three weeks."

So far, only the Tatas have evinced interest in buying Enron's 65 per cent stake in DPC.

The other stakeholders in DPC are MSEB (15 per cent), GE and Bechtel each with 10 per cent.

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