The government on Saturday said a solution was in sight for reviving the $2.9 billion Dabhol power project in Maharashtra.

"The Group of Ministers (GoM) headed by Defence Minister Pranab Mukherjee has held several meetings. A solution is in sight," Union Power Minister P M Sayeed told reporters after a meeting of power ministers of southern states to review the power sector in Chennai.

Sayeed said the revival of the Dabhol project was very important as huge funds have been blocked in the project.

Dabhol Power project has two phases. The first phase has the capacity of 740 MW which was commissioned on May 13, 1999, before it was shut down after the collapse of Enron, its main promoter.

In the second phase, with 1444 MW, 90 per cent work has been completed. "The associated LNG infrastructure is also 85 per cent ready. The project is now closed," he said, adding that after the UPA government came to power, it was taking "all efforts so as to utilise such a big power infrastructure and the final discussions are at a conclusive stage."

Without giving more details, the minister said the GoM also held a meeting in New Delhi on Friday to discuss the Dabhol project.

The Dabhol plant has been shut since May 2001 after a dispute between Enron and its sole power buyer -- the Maharashtra State Electricity Board.