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DPC lenders' Singapore meet inconclusive

The crucial talks between the foreign and Indian lenders of US energy major Enron-promoted Dabhol Power Company at Singapore remained inconclusive on Tuesday and are slated to continue on Wednesday.

"The meeting has spilled over to the second day with DPC participating in the proceedings on Wednesday," financial institutions' sources said.

Sources said Enron India managing director K Wade Cline and DPC president Neil McGregor are likely to participate in the second day of the meeting.

They said the meeting, which went on for over an hour discussed the on-going financial and legal disputes between DPC and the Maharashtra State Eletricity Board.

"Nothing has been finalised as yet," they said when asked whether both the Indian and foreign lenders were able to arrive at any solution for solving the current status quo.

At the Singapore meet, the lenders have come together to try and diffuse the tension and unite the two "warring partners,"-- DPC and MSEB.

The foreign lenders were expected to be updated by their Indian counterparts about developments like DPC's preliminary termiantion notice to MSEB, which, in retaliation, rescinded the PPA and stopped drawing power from the multinational from May 29.

The Indian lenders would press for completion of the $3 billion project, as DPC has stopped commercial production and doubts are being expressed regarding commissioning of its 1,444 MW phase-II due on Thursday.

The Indian team is led by Industrial Development Bank of India executive director R S Agarwal, who is also a DPC board member, along with representatives of the State Bank of India and ICICI.

The foreign lenders include a consortium led by ABN-Amro, Citibank NA, Japan Exim Bank and OPIC.

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