Giving an impetus to the process of disentangling the Dabhol Power Company dispute, a meeting of the Maharashtra government, IDBI and UTI discussed the asset sale of the DPC, on Tuesday.
The meeting discussed the pre-sale structuring and an all-party agreement to facilitate restarting of the DPC plant.
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Chief secretary Ajit Nimbalkar, energy and finance department officials, IDBI executive director A K Doda and UTI chief M Damodaran also attended the meeting.
The meeting that started at 1230 IST lasted till late evening.
The sub-committee sought details from the IDBI on certain issues pertaining to the restarting of the plant as well as the financial aspects.
Nimbalkar said, "While IDBI wants to sell off the DPC plant, this will require potential investors to come forward and offer a good price. However, for this to happen, a pre-sale restructuring has to be effected and contentious issues settled."
The issues discussed at the meeting included the ongoing negotiations between IDBI, General Electric, Bechtel and other offshore lenders.
The international arbitration by offshore lenders and the ongoing litigating in India were also discussed.
Nimbalkar said the financial institutions sought to know the quantity of power that the Maharashtra State Electricity Board would offtake from the DPC if the plant is restarted.
They also sought details on the other charges related to the plant restarting and various clearances required from the state government for selling the excess power outside the state.
They enquired about the facility to access MSEB transmission lines for transmitting the excess power from the plant to other potential buyers.
Earlier, the Maharashtra government had approved a revival plan for the DPC under which power would be sold at Rs 2.80 per unit to the MSEB by the utility.
The same proposal is currently before the Maharashtra Electricity Regulatory Authority for ratification.
