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Tata Power, BSES seek Enron's clearance for DPC due diligence

Bombay-based power utilities Tata Power Company and BSES Ltd have sought a clearance from troubled US energy major Enron for carrying on due diligence of its controversial Dabhol Power Company, which is up for sale at $1.2 billion.

"Both the companies have submitted separate proposals, including various terms and conditions and a request for carrying out due diligence before beginning the actual valuation process," a senior financial institution official said in Singapore.

The IDBI-led consortium of FIs (financial institutions) concluded their meetings with the energy major and the private companies Saturday morning after almost two and half days of marathon negotiations trying to find a solution to the Dabhol imbroglio.

When contacted, R V Shahi, chairman and managing director of BSES Ltd confirmed that proposals were submitted to the FIs and said, "we have forwarded various terms and conditions under which a possible buyout could be considered both by the lenders and Enron."

He said the sorting out of DPC's on-going legal battles with its estranged partner MSEB was one of the conditions.

"Both companies want DPC's all contracts to be reworked including the long term fuel and construction contracts before taking over the 2,184 MW plant," the FI official said.

Meanwhile, Tata Power managing director Adi Engineer said his company had provided "information and data to the FIs, as requested by Enron and its partners."

"We had very positive discussions with the FIs and the multinational, now it is upto them to take further course of action," Engineer added.

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