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DPC lenders appoint Stone & Webster to evaluate suspension

Indian and foreign lenders of US energy major Enron-promoted Dabhol Power Company are to appoint global energy consultants Stone and Webster to evaluate 'the cost of suspension' of the multinational's 2,184-mw project in India.

On the second day (Wednesday) of the lenders' Singapore meet, Enron India managing director K Wade Cline in his presentation suggested a 'temporary suspension' of the $3 billion project, FI sources said in Bombay on Thursday.

Cline also provided detailed alternatives vis-a-vis a post-suspension scenario with reference to power blocks and almost ready Liquefied Natural Gas terminal, they added.

Sources said Stone and Webster were zeroed upon to calculate their estimate of revenues of the entire project, including the LNG terminal as foreign lenders felt that a cost evaluation should be undertaken in the present circumstances.

"The Indian lenders failed to convince their foreign counterparts who in turn were in favour of the suspension," they explained.

"The fate of the DPC's 1,444 mw phase-II now hangs in balance as it has been postponed for the time being till the matter regarding the 'rescinding' of the power purchase agreement is settled," they said.

As per the original schedule of the PPA, DPC's phase II was to have been fired Thursday.

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