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IDBI approves DPC power at Rs 2.80/unit; asks NTPC to inspect

In a bid to restart the Dabhol power project after 18 months, financial institutions led by Industrial Development Bank of India endorsed Maharashtra government's proposal to buy power at Rs 2.80 a unit and asked National Thermal Power Corporation to begin inspection of the plant.

Union Power Minister Anant Geete told this to reporters after holding a meeting of stake-holders -- GE and Bechtel, representatives of the financial institutions -- who have the largest exposure in the project that was started by Enron and officials of central power utilities.

After protracted legal battle, Enron had shut down the project last year, a decision that is believed to have caused considerable damage to the machinery, when Maharashtra authorities had objected to the high cost of power.

As part of the package, an expert team drawn from NTPC, GE, Bechtel and IDBI would jointly evaluate the technical aspects of the plant and machinery as well as the spares and give its report within a week to enable a final decision on restarting the project.

In case, the project is put on stream again, NTPC would operate on a contractual basis, Geete said.

"We are happy to hear from the representatives of all stakeholders like GE, Bechtel and others that the state of the plant was good and it, under no circumstances, should take 15 months to restart the generation," Geete said after an hour-long meeting.

IDBI and Maharashtra State Electricity Board would now approach the power regulator in the state with the new tariff proposal for approval, Geete said.

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