The Dabhol revival plan has stumbled into a roadblock, with GAIL (India) Ltd — one of its saviours — questioning the revival process.The GAIL chief has suggested that the SPV — comprising GAIL, NTPC and Indian lenders — be allowed to retain the assets of DPC.Under the norms set by the Empowered Group of Ministers, offshore lenders and project promoters GE and Bechtel would be paid off their claims. The assets would then be transferred to the SPV for completion and running the project after which it would be auctioned off to the highest bidder.‘‘If the assets of DPC are transferred on auction basis and not outright sale to the SPV, then the possibility of it not becoming the successful bidder cannot be precluded,’’ GAIL Chairman Proshanto Banerjee wrote to the Cabinet Secretariat, which is monitoring the DPC revival.‘‘In such an event, there has to be an agreed compensation mechanism to cover the expenses incurred by GAIL up to the stage of the auction,’’ he added.The temporary ownership by the SPV merely for restarting the plant and the uncertainty about the its eventual winner also throws up another problem, says Banerjee. ‘‘The signing of any gas supply agreement with LNG suppliers by GAIL would have to be kept on hold till the transfer of assets takes place.’’
