Search the Internet          Tips  Sites: Finance, Investment

TPC, BSES to start DPC due diligence after Diwali

Troubled Dabhol Power Company, whose parent Enron Corp has been taken over by energy marketer Dynegy Inc, has agreed to due diligence proposal of its assets by Bombay-based utilities Tata Power Company and BSES Ltd.

"The road map is now clear. TPC and BSES will formally look into the financial books of DPC, its loans, sponsors and other assets and most importantly the legal wrangles and then make a final bid for the distressed company," a senior financial institution official said on his return from Singapore in Bombay on Sunday.

Representatives of Tata Power and BSES, who negotiated the sale of the $3 billion power project in Singapore during the past three days with the Industrial Development Bank of India led consortium, would visit the project site after Diwali and set the ball rolling, he said.

The official, referring to the take-over by Dynegy, said its impact in India will be minimal as talks had advanced to a "satisfactory level".

"However, the ultimate decision rests in the hands of the new management, which could take a different view of its Indian operations," he added.

IDBI chairman P P Vora, who led the talks, is likely to brief the board, when it meets on Monday, on the progress for sale of DPC and the discussions held at the meeting in Singapore.

Meanwhile, Enron India has refrained from making any statement on Dyengy's take-over.

ALSO READ:
The Enron Saga