Offshore lenders to bankrupt Enron Corp's $2.9 billion Indian power plant in Dabhol want to terminate the power purchase agreement with Maharashtra State Electricity Board, a statement from a consultant of the banks said.
"The Dabhol Phase I offshore lenders have voted to instruct Dabhol Power Co to proceed with termination of its PPA with MSEB as soon as permission can be gained through the Bombay high court," the statement said.
It said the banks took the decision "reluctantly" because of slow progress in restructuring the project and extensive costs incurred by the offshore lenders.
Indian lenders have obtained a court order forbidding the termination of the power purchase agreement, it said. "Now that the formal vote has been completed, the offshore lenders expect the Indian financial institutions to apply to the court for the lifting of the injunction at the earliest opportunity.
Nearly 30 financial institutions lent $1.9 billion to build the 2,184 MW gas-fired power plant and an adjacent terminal to import liquefied natural gas. The plant was shut down after a dispute with MSEB, which had contracted to buy all its power.
