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Journalism of Courage
Lenders are meeting once again to save the troubled Dabhol power project. The IDBI-led consortium will meet foreign lenders in London for taking over their outstanding dues in the jinxed project.
The lenders, who are meeting on the eve of counting of votes for the 14th Lok Sabha, are aware that the proposed blueprint would have to be taken up with the new government to be formed.
The caretaker government at the Centre cannot give any guarantee for the proposed special purpose vehicle (SPV) by the Industrial Development Bank of India (IDBI)-led consortium to buy $210-mn worth outstanding debt of the total $310 mn granted by the offshore lenders. The meeting assumes importance as foreign lenders may proceed for international arbitration if the talks fail, sources said.
Although foreign lenders OPIC, Citibank, ABN Amro, CSFB, ANZ Investment Bank, Bank of America and 19 others have a total outstanding due of over $ 340 mn, sources said IDBI-led domestic lenders are willing to offer $ 200-250 mn only.
