DPC: Bechtel raises 145;extra issues146;

The ongoing Dabhol settlement process has taken a new twist after Bechtel raised 8220;extra issues8221; concerning the exact amount to be ...

The ongoing Dabhol settlement process has taken a new twist after Bechtel raised 8220;extra issues8221; concerning the exact amount to be paid by the government to buy out its stake in Dabhol Power Company DPC.

Confirming this, sources said this issue was raised recently and was not covered in the term sheet for the settlement process that the empowered group of ministers GoM had cleared a few weeks back. The new demand raised by Becthel would require a fresh round discussions within the government and may have to be taken to the GoM to decide how to take this issue forward.

Under the term sheet, both GE and Bechtel had agreed on a final settlement price of 305 million. Of this, Bechtel was to get 160 million for its DPC stake and GE 145 million. Both entities hold the same equity amount DPC.

Though officials were tight-lipped on details, sources said the present demand centres around what Bechtel would exactly get from the Centre. They also said no such demand has been put forward by GE. Sources said there was a mutual understanding on this figure and was part of the term sheet. They also said Bechtel has more or less agreed on the Centre8217;s and GE8217;s stand on how to treat third party indemnity claims, though a final word is still awaited.

Bechtel8217;s present demand, however, comes after the company enforced the Paris International Tribunal order asking the Maharashtra government to pay 123 million in damages. It also claimed to have initiated the process to attach shares of the Maharashtra Power Development Corporation Ltd in DPC.

Sources said before a general consensus on the term sheet was reached between the parties concerned, Bechtel had placed a demand of 175 million. During the course of discussions, this figure was brought down to 160 million.

Discussions on resolving the Dabhol crisis are presently being pursued from different angles. One centres around the various legal disputes between GE-Bechtel and the lenders, Centre and the Maharashtra government. The other revolves around the Indian and foreign lenders and the third involves the plant8217;s revival. For that, sources said the National Thermal Power Corporation has already completed a round of due diligence at the plant site and there are some issues surrounding guarantees for undertaking more extensive work.

Story continues below this ad

Parallel to this, again on the plant8217;s revival, GAIL is holding discussions with various LNG suppliers for gas supply. Sources said a firm commitment is still awaited. The present commitment would at best suffice for the first phase of the project, which is 740 mw, while the entire project capacity is 2,184 mw, they added.

New name for Dabhol

NEW DELHI

: As per the revival plans for DPC, the government plans to shelve the name 8220;Dabhol Power Company8221; altogether. Instead, once the settlement process is through, the venture would be rechristened, with no mention of 8216;Dabhol8217; whatsoever. Sources said four names have been put forward for SPV that is expected to take over DPC8217;s assets. The four names that are being considered for the project located in the Ratnagiri district of Maharashtra are: Konkan Energy Private Ltd; West Coast Energy Private Ltd; Konkan Gas and Power Private Ltd and West Coast Gas and Power Private Ltd.