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Home > Business > PTI > Report

NTPC, lenders hold talks over Dabhol Power

March 11, 2003 15:46 IST

Power Ministry on Tuesday held discussions with National Thermal Power Corporation and financial institutions, including IDBI, as part of efforts to restart power generation at the idle Enron-promoted Dabhol Power project.

The meeting reviewed procedural issues concerned with resuming generation at the 740 mw naptha powered plant which has been lying idle for the past one and half years.

Earlier, lenders had agreed to allow NTPC to start production at the plant as part of a deal brokered by former Power Minister Suresh Prabhu under which the state electricity board had agreed to purchase power at Rs 2.80 paisa per unit.

Enron Power Corporation, which is facing a bankruptcy battle in the United States, owns a majority 60 per cent stake in the project while Maharashtra State Electricity Board holds 15 per cent equity with international promoters GE and Bechtel holding 10 per cent each.

Last month the two minority partners had agreed to extend unconditional support towards restarting power generation.

The meeting chaired by Power Minister Anant Geete was attended by NTPC Chairman C P Jain, CEA Chairman H L Bajaj, officials of Industrial Development Bank of India and representatives of Power Ministry.

Official sources said the meeting was largely confined to contractual matters connected with project. Among the matters discussed were the issue of bringing in technical support staff and the duration of their stay.

However, no financial issues were reported to have been raised.



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