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DPC lenders may skip June 4-6 meet in Singapore

The Indian lenders of the US energy major Enron-promoted Dabhol Power Company may skip the forthcoming two-day global lenders meet from June 4-6 in Singapore to discuss the implication of the pre-termination notice served by the former to State Electricity Board.

"We have discussed the crisis with the international

lenders on several occasions including at the April 25 London meet and the three day tele-conferencing last week. Unless there is something specific on the agenda, the Indian lenders are not too keen to attend the Sint," sources in Bombay said.

The Indian lenders, led by Industrial Development Bank of India, State Bank of India and ICICI, have lent around $1.4 billion out of DPC's total $3-billion 2,184-mw project.

The lenders have stopped disbursement of about 20 per cent of the remaining funds of around $800 million for the phase-II, owing to the severing of ties between DPC and MSEB over non-payment of Rs 2.13-billion dues, they added.

"We see no reason to release the suspended funds, unless a proper solution is chalked out with sincerity from all the concerned parties including the state government, MSEB, DPC and the Centre," sources said.

They said the foreign lenders led by ABN-AMRO were in no mood to comprehend the financial failure of MSEB and argued that the loss-making board should abide by its contractual agreements as per the power purchase agreement.

Meanwhile, the Indian lenders would once again knock the Centre's doors next week to seek its intervention in solving the imbroglio.

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