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GE, Bechtel should forget about recovery of DPC equity: Govt

In a setback to the only two active stakeholders of Dabhol Power Company, the Central government has asked GE and Bechtel to "forget as of now" recovery of their 10 per cent equity each in the idle 2,184-mw project.

"We have written to GE that as of now both the companies (including Bechtel) should lay to rest their claim for recovery of investment upto $120 million each in the project.

"We shall think of it only after making the project viable, which is possible once it resumes power generation leading to an inflow of revenues," top union power ministry sources said in Mumbai.

Both the engineering and construction majors have been seeking a fair treatment for their equity position and have also agreed to share their technical expertise for revival of the $3-billion asset which has not generated power since last 18 months.

When contacted Union Power Minister Anant Geete said that both GE and Bechtel have been told to keep aside their "equity issue" and help National Thermal Power Corporation restart the plant.

Asked whether the two MNCs had demanded any compensation for sharing their expertise with NTPC, Geete said, "first they will have to firm up modalities with NTPC for putting DPC plant back on stream. If NTPC is unable to restart on its own, then we shall request for their actual involvement and pay them on our terms".

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