Search the Internet          Tips  Sites: Finance, Investment

FIs fail to resolve Enron issue

Financial Institutions led by IDBI failed to come up with a solution to the Enron imbrogolio, which has resulted in shutting down of the $2.9 billion Dabhol Power Project.

Top officials of IDBI and ICICI met officials in the finance and power ministries in New Delhi on Wednesday but failed to come up with an 'optimum' solution.

"We discussed Enron. The discussions are continuing and we are examining various options," IDBI chairman P P Vora told reporters after meeting power secretary A K Basu.

He said the FIs, which have a total exposure of over Rs 62 billion in the project, wanted to come up with an optimum solution but declined to give a time frame for it.

Earlier in the day, Vora met Finance Minister Yashwant Sinha to apprise him about the situation.

FIs had decided to come up with a solution by Oct 31 for the second phase of the 2,184 MW Dabhol Power Company.

A settlement of the Enron imbroglio, being played out since early this year, assumes importance in view of Prime Minister Atal Bihari Vajpayee's forthcoming visit to Washington where he is likely to have wide ranging discussions with US President George Bush.

Enron was the biggest donor to Bush's presidential electoral campaign.

So far, Tata Power and BSES Ltd are in the fray for buying Enron's stake in DPC.

However, both the companies showed reluctance to buy Enron's stake at the price spelled out by the US power giant.

ALSO READ:
The Enron Saga