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IFCI may not shell out more funds for DPC

The Industrial Finance Corporation of India, which is awaiting a Rs 10-billion bailout, is unlikely to shell out additional funds for the troubled Dabhol Power Company.

"IFCI's exposure to Enron's Dabhol power project now stands at about Rs 4.50 billion. It has already crossed the limits in the project. The FI will not be able to infuse fresh funds," official sources said.

Sources in other FIs said that IFCI is likely to approach IDBI, ICICI and other lenders to shoulder its share in the proposed Rs 22.70-billion financial package for the Enron-promoted power project.

IFCI is estimated to have an additional exposure of around Rs 1.33 billion which would increase its lending to Rs 5.87 billion from the present Rs 4.54 billion.

Although IFCI chairman P V Narasimham confirmed the development, he said: "We have not yet initiated talks with other FIs."

IDBI, ICICI, SBI, IFCI and Canara Bank have a total Rs 62.04-billion exposure in the $2.9-billion DPC which ran into troubled waters after promoter Enron decided to quit the project.

The government had asked the committee of lenders to evolve a package by this weekend to facilitate earlier settlement of the Enron issue.

Although the FIs are considering to seek the Centre's guarantee, IFCI would still not be in a position to come up with its share of funds. IFCI is likely to negotiate with other FIs before they finalise the package, sources said.

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