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FIs
form panel to spot buyer for Enron stake in Dabhol
Sitanshu Swain & Sanjay Jog
Mumbai, Aug 28: Financial institutions (IFIs) led by
the Industrial Development Bank of India (IDBI) have formed
a top level committee to scout for a buyer for the Enron stake
in the 2,184 mw Dabhol project.
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Godbole
panel to finalise report on Aug 31
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THE
Madhav Godbole renegotiations committee, which has decided
to wind up its functioning in the wake of Enron’s decision
to pull out of Dabhol project, will meet on August 31
to finalise its report to be submitted to the state
government. The committee, during its meeting held on
August 17 and 18, had recommended the interest free
loan of Rs 25,000 crore to be lent by the Centre to
the state government for 15 years in order to convert
dollar debt into rupee debt.
It had also called for the shelving of original 75 per
cent equity in the Dabhol project and a per unit tariff
of Rs 2.14 in 2003 and Rs 2.39 in next five years.
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The
committee to be headed by IDBI executive director AK Doda
will also comprise representatives from the ICICI, SBI, IFCI,
Canara Bank, state and central governments, Maharashtra State
Electricity Board (MSEB). It is also expected to find a buyer
for the Enron stakes within a month.
IDBI sources told The Financial Express that the purpose of
a high-level committee is to find out a suitable buyer for
the 85 per cent stakes in the Dabhol project held by Enron,
GE and Bechtel.
“After our meeting with the union finance secretary Ajith
Kumar, we have just formed a committee to work out a comprehensive
package for transferring the Enron stakes to new buyer,” sources
said.
The brief of the committee also includes the necessary additional
financial assistance to complete the Dabhol phase-II, which
is already 90 per cent complete. Sources are of the view that
over Rs 2,000 crore would be needed for the project completion.
The Madhav Godbole renegotiations committee had estimated
that around $750 million would be needed for the completion
of Dabhol phase-II, whose construction has been suspended
from June 17 since the suspension of construction contract.
So far, an expenditure of Rs 1.1 billion has been incurred
on the completion of Dabhol phase-I (740 mw) and nearly $1.8
billion on the 90 per cent construction of Dabhol phase-II
(1,444 mw)).
The committee will also go into the aspects of likely power
purchaser from the Dabhol project. Sources said that the committee
will also weigh the possibility of looking at the prospects
of just another buyer in addition to MSEB at the base load
factor.
It is necessary to find a buyer as the fund for meeting the
loan repayment schedule of Dabhol project is sufficient only
up to end of September.
Unless the IFIs rope iin the new buyer, the Dabhol project
turns to be non-performing assets for them.
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