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DPC defaults on $24 mn FIs interest payment

US energy major Enron's troubled Dabhol Power Company has defaulted towards interest payment upto $24 million for its 1,444-mw phase II to the consortium of Indian lenders led by Industrial Development Bank on India.

"DPC has not made interest payments due on September 30 to its Indian lenders which comprises both rupee and US dollar debts for Phase II", the company spokesman said in Bombay on Wednesday.

Last month, the multinational had defaulted towards interest payments to the tune of $20 million to its foreign lenders.

The IDBI-led Indian FIs have a Rs 62.04 billion exposure to the project which is 96 per cent complete, while that of foreign lenders was upto $444 million.

Financial institution sources said as an aftermath of this current default, the FIs may take a decision 'to capitalise' the unpaid amount.

"The loans were extended by the Japanese export credit agency, JBIC, against a guarantee from the Indian FIs", they said adding that the Japanese bank had already asked IDBI to take over IFCI Ltd's exposure to DPC.

For the phase II, the Indian lenders have an exposure of Rs 49.54 billion, including Rs 24.90 billion as fund based and Rs24.64 billion as guarantees to the foreign lenders.

Incidentally, US EXIM Bank has already threatened to encash the Indian lenders' guarantee if DPC defaulted towards payments.

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