Lenders explore plans to revive DPC

The Dabhol offshore lenders led by the US government promoted Overseas Private Investment Corporation (OPIC) and Indian lenders are currently in London to look into the possibility of an early revival of the distressed project through equity or asset sales. The meet deserves importance especially when foreign lenders have already initiated arbitration proceedings against their Indian counterparts for blocking the funds from pursuing rights embodied in the financing documents. Institutional sources said Indian lenders led by IDBI with an exposure of Rs 2,121 crore of the total Rs 6,200 crore has been favouring Dabhol asset sale while offshore lenders have been pitching for equity sale.

IDBI chairman P.P. Vora, executive director A.K. Doda and its legal advisor GM Ramamurthy are expected to argue for an early revival of Dabhol power generation with the active association of GE and Bechtel, which hold 10 per cent stakes each in the now-fallen Dabhol Power Company (DPC). Indian lenders said resumption of power generation and the subsequent offtake by Maharashtra State Electricity Board (MSEB) would start revenue mobilisation.