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This is an archive article published on May 8, 2004

Two-pronged strategy to end Dabhol imbroglio

A Solution to the troubled Dabhol Power Project appears to be in sight with IDBI-led financial institutions eager to thrash out their disput...

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A Solution to the troubled Dabhol Power Project appears to be in sight with IDBI-led financial institutions eager to thrash out their disputes with offshore lenders at the forthcoming meet on May 12 in London. Moves are also afoot to appoint the best technicians to restart the 2,184 MW power project estimated at over 3.0 bn Rs 13,500 cr.

The top officials of IDBI, ICICI Bank and State Bank of India on Friday apprised the Naresh Chandra Committee and Finance Ministry officials of the future course of action.

8216;8216;It was a good discussion in evolving what best comes out. Lenders are talking constructively with each other. They have to come to an amicable solution,8217;8217; Chandra said after the two hour long meeting at Finance Ministry.

Although he declined to give a time frame in resolving the Dabhol debacle, Chandra said it would be sorted out 8216;8216;as soon as practicable8217;8217;.

IDBI chairman M. Damodaran, ICICI deputy MD Kalpana Morparia and SBI MD, C. Bhattacharya declined to comment on the forthcoming meeting in London. Indian lenders had a 8216;8216;positive8217;8217; dialogue with overseas lenders in Singapore in April-end but could not arrive at a consensus.

 

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