Indian consortium: We have a lid on DPC

Indian lenders — who have sunk nearly Rs 10,000 crore in the jinxed Dabhol Power Company (DPC) — are unperturbed over the move by ...

Indian lenders — who have sunk nearly Rs 10,000 crore in the jinxed Dabhol Power Company (DPC) — are unperturbed over the move by General Electric and Bechtel to buy out the Enron Corp stake in the project as the equity and other rights of the DPC have been pledged with them.

‘‘DPC assets are in our control. Moreover, while extending the loans, DPC had pledged the equity and rights with us,’’ said an official of the IDBI-led consortium. But Enron observers say there could be an intense tug-of-war between GE-Bechtel combine and the financial institutions.

‘‘The transfer of the equity holding exists only on paper,’’ said an IDBI source who requested anonymity. Lenders from India and abroad are meeting on April 26 to discuss the new development in the ownership pattern of DPC.

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GE, however, expressed optimism. ‘‘Our position continues to be that a consolidation of foreign equity moves dabhol closer to restarting. These actions are part of a comprehensive effort to reach a responsible settlement with various stakeholders,’’ GE said in a statement. The US bankruptcy court on Thursday admitted the plea made by GE and Bechtel to pick up the 65.15 per cent stake held by Enron Corp in Dabhol Power Company (DPC). GE and Bechtel already hold 10 per cent stake each in DPC, while the balance 15 per cent is held by Maharashtra State Electricity Board.

The Centre, the Maharashtra government and the IDBI-led institutions did not object to the plea by GE and Bechtel. However, the US court rejected Reliance Energy Ltd’s (REL) plea to acquire Enron Corp’s 65.15 per cent stake in DPC. REL had offered to buy out Enron Corp’s equity at $25 million with a guarantee of an international bank.

The Reliance bid, though higher than the GE-Bechtel bid, failed to get the government support. However, MSEB did not make any bid.