The ongoing impasse over the Dabhol power project impasse has taken a new twist with GE and Bechtel — who now control 86 per cent of Dabhol Power Company’s (DPC) equity — agreeing to cooperate with the US government-promoted Overseas Private Investment Corporation (Opic) and the Indian lenders in implementing the process of selling Dabhol’s assets.In April, GE and Bechtel acquired the 65.8 per cent stake held by Enron Corp and its associates in the now fallen DPC. The two already held 10 per cent each in the company prior to this. OPIC has sent out letters yesterday to the Government of India (GoI) and IDBI indicating that ‘‘Opic and IDBI-led lenders to the now closed Dabhol project are ready to begin the sale process’’.GE and Bechtel have conveyed to Opic that they were prepared to work with the GoI and the Indian lenders and any new buyer to re-start the plant. This re-start process can be negotiated with the new buyer on a commercial basis, independent of past problems.Sources said OPIC proposed to send a team to India in the middle of November to begin work with Indian lenders and to confirm that GoI still supports the way forward recommended by Opic and the Indian lenders. Opic’s communication to GoI and Indian lenders coincided with the meeting of the Group of Ministers, led by Defence Minister Pranab Mukherjee, held on Tuesday. The meeting discussed the finance ministry’s proposal to provide back a guarantee of Rs 3,150 crore to SPV to be floated by Indian lenders to buy out the offshore debt.So far, Tata Power Company and Reliance Energy Limited have expressed their desire to bid for the Dabhol project. Curiously, ONGC has also expressed its plan to bid for the Dabhol project, which has been closed since May 29, 2001.
