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IDBI urges Tatas, BSES to buy DPC equity

The Industrial Development Bank of India, which has a large investment in the Dabhol Power Company's 2184-MW project at Guhagar in Ratnagiri, has approached power giants across the country -- including Tata Power and Bombay Suburban Electricity Supply -- to consider buying the DPC equity to resolve the issue.

A joint meeting held in Bombay with power companies and lenders led by IDBI, explored the possibility of resolving the issue by asking private power companies to consider buying the DPC equity, subject to certain terms and conditions.

However, the power companies said that DPC would have to scale down the selling price for them to show interest since at the at the existing price it was not feasible to buy.

When asked about the appointment of J M Financial and Ernst & Young as consultants to undertake a study of the DPC plant, a Tata Power spokesperson said: "It is an internal study. There is no question of appointment of the above firm because every thing is at a preliminary stage at the moment."

Tata Power has only indicated a preliminary interest in examining the project, provided the major issues are properly addressed and solution agreed to by the government.

Tata Power would like to develop a solution that is beneficial to the consumers and stakeholders, the spokesperson added.

UNI

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