Search the Internet          Tips  Sites: Finance, Investment

Tatas offered to run DPC for 3 months

BS Corporate Bureau in Mumbai

The Tata group had offered to maintain the Dabhol power plant free for three months to the lenders after Enron-walked out of the project.

There was however no response from the lenders. Adi J Engineer, managing director of Tata Power said, "We had given a written proposal to this effect to the lenders after a meeting at Singapore in February this year. We have not heard form them since". He was speaking to newsmen on the sidelines of the 83rd AGM of the company today.

Earlier, Ratan Tata, the group chairman who also heads the company had referred to it in his speech. The plant has been lying idle for over a year after its three foreign promoters, Enron, GE and Bechtel walked out. The institutions are trying to find a buyer but are yet to finalise whether it will be through the sale of equity or assets.

"The problem is right now with the financial institutions. They have to determine as to the level of hit they are prepared to take. The asset is fast deteriorating and a solution needs to be found in the national interest," said Tata while replying to questions from shareholders.

Tata Power has chalked a capex of Rs 5 billion for the current financial year. The company is also planning to set up two more transmission lines at Jammu apart from bagging the construction of the Tala-Delhi transmission line.

Powered by

ALSO READ:
The Enron Saga
More Money Headlines