US ambassador to India David Mulford on Thursday called for a speedy resolve to the controversial Dhabol power project issue if India is interested in fostering its global image of being an interesting centre for foreign investments.

"The Dhabol issue is under negotiations and we are glad to see some movement leading to resolving the issue," Mulford, currently on a visit to the metropolis, told media persons in Mumbai on Thursday.

"Speedy negotiations and an energetic pace in resolving the problems could go a long way," he added and cautioned that the negative effect of an unresolved issue could cast a shadow on India as a potential centre for foreign direct investments.

Foreign companies interested in investing in India could be put off by the fear that if a problem arose, it could lead to long-drawn legal wrangles and multiple hassles, he observed.

"There were several efforts by the participants, including the government, to resolve the problems. There is no point in dragging the issue and to keep it lingering even though there are a lot of complexities involved," he said.