Dabhol on track, Bechtel is willing

The Dabhol settlement process is almost complete with US-based Bechtel Corp. finally informing the Indian side that it’s willing to set...

The Dabhol settlement process is almost complete with US-based Bechtel Corp. finally informing the Indian side that it’s willing to settle and not proceed with international arbitration.

A communique to this effect was sent yesterday and sources said that Bechtel has more or less accepted all conditions put forward by the Indian side on Monday. The two sides now need to iron out how to reach a final accord on the third-party claims.

In its offer, Bechtel has asked for 100 per cent upfront payment of the settlement amount of $160 million as against the Indian side’s offer to pay the amount in two tranches of $80 million each.

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While the Indian side is still to respond to Bechtel’s offer, sources said that Bechtel’s entire counter-offer is more or less in line with what the Indian government had offered on Monday for a settlement.

Once the settlement is reached, Bechtel will drop all their claims in the Dabhol power project.

The engineering-cum-construction company, which was the only party that was still to come on board for a settlement is now also willing to absorb the tax levied on the settlement amount—which it didn’t accept even a few days back. GE, however, agreed and signed the settlement agreement last Saturday.

The deal with Bechtel has to be signed before July 19, 2005, the date set for the international arbitration in London.

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