The Industrial Development Bank of India (IDBI)-led lenders and the US government-promoted Overseas Private Investment Corporation (Opic) have moved ahead and chalked out the road map for the selection of a new sponsor for the beleaguered Dabhol project. This was worked out at the conclusion of a two-day meeting between Indian lenders and Opic held in London. The IDBI-led lenders, with an exposure of over Rs 6,200 crore in the troubled Dabhol project, was assisted by its financial consultant, NM Rothschild during negotiations with Opic.Institutional sources from London said over phone that ‘‘we discuss the broad guidelines for carrying out the bidding process for the selection of new sponsor for the now closed Dabhol project’’.The outcome of the London meeting deserves importance at a time when Opic during last month had held telephonic talk with Tata Power Company and Reliance Energy Limited (the possible contenders for the project) to know their views on the bidding process.Sources said a unanimous decision had been taken that Opic would decide jointly with the Indian lenders on finding a new sponsor.In deference to the clear preference of the prospective bidders, the assets of Dabhol projects would be sold to the highest bidder who would become the new sponsor. The selection would take place through a transparent bidding process. The lenders were of the view that their claims were superior to that of the contractual dues of GE and Bechtel and the value of the equity contributors.The new sponsor is expected to make the necessary investments to complete the plant. Dabhol Phase-I (658 MW) is closed since May 29, 2001 after the Maharashtra State Electricity Board terminated power purchases from the now fallen Dabhol Power Company. On the other hand, Dabhol phase-II (1,444 MW) is about 93 per cent complete.The new sponsor at its discretion may negotiate the Dabhol contract with GE-Bechtel or with any other agency. The new sponsor is expected to complete the LNG plant and the unloading facilities.
