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Enron offers 30% equity cut in DPC; TPC wants 50%

As the date for serving the final termination notice closes in, US energy major Enron and its partners as a last ditch effort, have offered a 30 per cent equity cut in troubled Dabhol Power Company at around $850 million even as potential buyer Tata Power Company favoured a 50 per cent discount at $600 million.

"Enron and its partners have agreed to take a 30 per cent hit in equity, but TPC which is one of the contenders for the project is not ready to offer anything less than half of $1.2 billion price tag for DPC put by the multinational," financial institutions sources said in Bombay on Tuesday.

In the crucial meeting to be held in Singapore from November 7-8, sources said the Indian FIs would try and negotiate the 'acceptable' terms for a possible sale of the $3 billion company to TPC.

"TPC has also disputed Enron's $2.2 million retained costs and is of the opinion that it could not be more than $ 0.8 million," sources said.

The Bombay-based utility also wants concessions from the Indian financial institutions in order to bring the tariff at an 'affordable' level of Rs 2.70 or Rs 2.90 per unit.

"The domestic power company has asked IDBI led FIs for writing off a significant amount of DPC loans, an extended moratorium in repayments of loans and cut in interest rates," sources added.

FI sources said TPC aims at negotiations with the power project and Liquified Natural Gas facility to be dealt separately.

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