Countering previous estimates of $100-150 million, reviving the distressed Dabhol phase-I (658 mw) will not require more than $15 million, says preliminary projections made by Belgium-based Tractabel. The projections have been made after carrying out technical inspection of the plant which is shut since May 29, May 2001. Financial institutions, which had appointed NM Rothschild as financial consultant to make a comprehensive plan for the sale of Dabhol assets, had roped in Tractabel as technical consultant. Sources said that the plant has been maintained by Punj Lloyd in an efficient manner.Interestingly, the US-government promoted Overseas Private Investment Corporation, which was favouring sale of equity in the company, has now shown its inclination towards the sale of Dabhol assets, which has been pursued by the Industrial Development Bank of India (IDBI)-led rupee lenders’ consortium. MSEB opposes equity sale MUMBAI: Maharashtra State Electricity Board, which holds 15 per cent equity in Dabhol phase-I, has already opposed any attempt to sale equity but favoured Dabhol assets sale. MSEB is expected to soon meet a high level team from Tractabel-NM Rotschild. IDBI on behalf of Tractabel-NM Rotschild, had sought such a meeting with MSEB to take into accounts the latter’s views on Dabhol phase-I revival. Sources said that it has insisted that IDBI representative should remain present during the proposed deliberations. (ENS) According to the Tractabel findings, there is no damage to the 9FA turbines in particular, and other machinery of the Dabhol phase-I and phase-II (1,444 mw) which is 93 per cent complete.However, Tractabel, along with NM Rothschild, have insisted on the reinstallation of e-chips, which were removed by DPC citing security reasons in December 2001. DPC had submitted to the Bombay High Court in early 2002, that e-chips, though removed, were not taken outside India. In fact, DPC had offered to submit e-chips to the Industrial Development Bank of India for its possession. Sources said that Tractabel, in association with NM Rothschild, would prepare an exhaustive report narrating nitty-gritties of the status of each and every component of the plant, to be submitted later to the Bombay High Court for its approval. The court has given two months’ extension up to September 8 for submitting the Dabhol revival report. The HC, which on April 8, 2003 had barred DPC from serving a final termination notice to MSEB, had asked the IDBI-led financial institutions to submit the Dabhol project revival report by July 8. Tractabel-Rothschild will, in a detailed report give the present status of rotors, electro-hydraulic control system, bearing, fuel system, combustion system etc. The consultants will also make projections towards the investment required for the completion of Dabhol phase-II (1,444 mw), the construction of which ground to a halt after its construction contractors terminated their contracts with DPC since June 17, 2001.According to sources, for reviving the project, Tractabel has emphasised the need for an active involvement of GE, which holds 10 per cent equity in DPC and has supplied 9FA turbines. However, the Belgian firm is believed to have opined that the association of Bechtel, lead contractors to the project, would not be necessary as the revival work could be carried out by other contracting firms.It must be mentioned here that the state-run National Thermal Power Corporation, which was earlier seen as a candidate for taking charge of the operations & maintainence work at Dabhol, had in its observations in October-November 2002 had called for GE’s involvement. GE’s president and CEO Scot R Bayman had communicated to Power Minister Anant Geete that no other company will have access to the experience or technology required to support proper repair and optimal operation of 9FA turbines. Bayman had also insisted that the involvement of Bechtel in any restart was important to a safe, efficient and insurable plant, which would be attractive to potential buyers.
