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Enron, GE, Bechtel claim insurance on DPC

Bankrupt US energy-trader Enron, General Electric and Bechtel have sought more than $200 million in compensation from Overseas Private Investment Corp for losses they incurred in Dabhol Power Company for which the US agency had provided insurance cover, media reports quoting Bloomberg said.

Enron owns 65 per cent of DPC, General Electric Co and construction firm Bechtel Corp each own 10 per cent and the Maharashtra State Electricity Board holds the remaining 15 per cent.

The three companies filed claims with OPIC last week for "expropriation compensation" for the $2.9 billion DPC, said Larry Spinelli, a spokesman for the agency.

"We are looking to the Indian Government for constructive involvement in the settlement of these issues," Spinelli told Bloomberg.

DPC was Enron's biggest investment outside US.

Tata Power and BSES are currently negotiating with IDBI-led domestic financial institutions, who have loaned DPC $1.4 billion, for a possible purchase of 85 per cent overseas equity in the 2,184 MW project.

If Enron files claim they would have to transfer their share holding in DPC to OPIC. That would mean losing the right to get the money from potential buyers, observers pointed out.

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