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FIs pay Rs 700 mn to US Exim

K Giriprakash

A consortium of financial institutions including the Bangalore-based Canara Bank have paid around Rs 700 million to US Exim Bank as part of the deferred payment guarantee obligations for the $2.9 billion Dabhol Power Corporation.

"There were certain installments due which has been fully paid now," sources in the consortium said. Sources denied that it was because of invoking the guarantee by US Exim Bank.

Sources said this was paid off as part of the normal course. "What was required to be met has been paid," sources said.

Canara Bank alone had an exposure in excess of over 15 per cent. The deferred payment guarantee, FI sources said, could be against equipment supplies or cash loan. The consortium comprised four banks and other institutions.

The domestic lenders led by IDBI are already working out the modalities to finalise a buyer for Enron Corporation's 85 per cent stake in the 2,184 mw Dabhol power project.

The lenders hope to identify a buyer by March end itself. BSES, Tata Power, Reliance Power, GAIL, Gaz de France, Royal Dutch Shell and British Gas have already submitted their expression of interest for the foreign stake on February 7.

Last month, foreign and domestic lenders to the bankrupt Enron Corp's Dabhol power plant ended a three-day meeting in Singapore. No disclosures were made regarding the progress on how the unit should be sold.

ABN AMRO, one of the advisors, hosted the meeting. The meeting was called to finalise the due-diligence dates and decide on how to select a buyer for the foreign equity stake in the plant.

More than 20 lenders, including both Indian and foreign banks, have a combined exposure of nearly $1.9 billion to the project. Enron owns 65 per cent of DPC, General Electric Co and US contractor Bechtel Corp each own 10 per cent.

The remaining 15 per cent is held by the Maharashtra State Electricity Board.

The plant has been idle since June 2001 following a payment dispute with the financially-strapped MSEB.

The board owes around $240 million to the DPC. The 740-megawatt first phase started operations in May 1999 and the 1,444 mw second phase is nearly complete.

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