November 2, 2002 | 1047 IST
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Money > Business Headlines > Report November 2, 2002 | 1047 IST |
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Bechtel wants a fee for restarting Dabhol
S Ravindran The lenders to the Dabhol power project and the state and central governments are trying to restart the controversy-ridden project in Maharashtra, but they have just received a shock. Bechtel, the engineering-procurement-construction contractor that holds a 10 per cent stake in Dabhol Power Company, has asked for a fee for sharing the designs and codes required to re-start the project. Bechtel had taken the line that its obligations as an equity holder ended the day Dabhol Power Company went into the hands of a court receiver and it would now function purely as a contractor. The only other copies of the designs are with Enron and General Electric, both of which are out of the company, and the court receiver. "The firm knows it holds all the aces because, along with General Electric, only Bechtel knows how to run the plant," a source in the lenders' consortium said. Phiroz Nagarvala, managing director of Bechtel Enterprises India, said: "We are prepared to work with the new owners on a commercial basis. We have, however, not indicated any price because the nature of the understanding has not yet been specified to us." The problem began when Enron Corp, which held a 65 per cent stake in the project, walked away with the e-chips which contained the code for running the plant. Later on, a legal action by the lenders saw the chips being deposited with the court receiver. But reclaiming the chips is, by itself, not a solution to the problem. "Running a power plant is not as easy as inserting a floppy. Bechtel knows the design of the plant and is acquainted with its operational history. It is virtually impossible to restart the plant without Bechtel's help," a lender representative said. They have now asked Bechtel to submit a proposal, indicating its price, and will take a final decision only after evaluating the proposal. Powered by ALSO READ:
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