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September 13, 2001
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Money > Business Headlines > Report September 13, 2001 |
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DPC lenders against picking up foreign equityBS Economy Bureau Indian lenders led by Industrial Development Bank of India are against picking up the foreign equity in Dabhol Power Company. While Enron Corp, US, holds 65 per cent stake in the $1 billion equity of DPC, Bechtel and GE hold 10 per cent each. Sources told Business Standard that the Indian lenders have asked prospective buyers to directly negotiate with Enron for any possible deal. The lenders will play the role of facilitators in the process and step in only to iron out any differences between the two parties. The Hinduja group, Tata Power, AES and BSES had evinced interest in taking over the project. "A number of people approached us, but we have asked them to talk directly to Enron," said a top executive with an Indian lender, which has significant exposure to DPC. He, however, refused to divulge the name of prospective buyers who proposed to acquire DPC to the lenders. Sources, however, noted that a buyer for Enron's equity in DPC would be finalised over the next fortnight. A top government official said that the Enron issue would be sorted out before the prime minister leaves for the US on September 20. The DPC had proposed that the Indian lenders or any central utility take over the project and pay the cost incurred by the foreign equity holders in three instalments of 50 per cent, 40 per cent and 10 per cent. A DPC spokesperson said that it had not given any mandate to the Indian lenders to negotiate with private companies. While DPC said that it was still hopeful that the Centre would step in and take over the project, the power ministry has time and again indicated that it was not in favour of National Thermal Power Corporation acquiring the foreign equity in the company. The Indian lenders too have now firmly said no to taking over the company. Powered by YOU MAY ALSO WANT TO READ:
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